--- - |2 Abstract Previous examinations of environmental stressors in organizations have mostly emphasized their dysfunctional effects on individuals’ emotions and behaviors. Extending this work by drawing from the social functional perspective on emotion, we propose that customers’ negative emotional responses to environmental stressors in organizations can exert both dysfunctional and functional effects on customer–employee interactions. Specifically, we theorize that situational and physiological forms of environmental stressors can be dysfunctional by incurring customer anger, precipitating customer aggression, and diminishing employee helpfulness. We further theorize that situational relative to physiological stressors can exert functional effects in inducing customer fear that elicits empathy and helpfulness from employees. We test our model via an archival, observational, and critical incident yoked experimental study set in the airport context. This research contributes to stress theory and its organizational application by integrating theory from the social functional approach to emotion with appraisal‐based theories of stress in organizations. - Personnel Psychology, EarlyView.