This study delves into the status quo, variations based on demographic information, and the relationship between job stress, burnout, and Psychological Capital (PsyCap) among Chinese English as Foreign Language (EFL) teachers in higher institutions. The investigation utilized a questionnaire for data collection and analysis. 297 EFL teachers from various institutions in China were recruited between July and October 2023. The data underscores that Chinese EFL instructors in higher institutions experience moderately high levels of stress, burnout, and PsyCap. However, when compared to stress and burnout levels, PsyCap emerges as relatively lower. The statistical results revealed that male teachers report significantly higher stress levels than their female counterparts; no difference was identified in job burnout indicators; among four indicators in PsyCap, male teachers exhibit significantly higher self-efficacy compared to female teachers. Private school teachers face elevated levels of stress and increased burnout compared to their public school counterparts, alongside possessing lower levels of PsyCap than those in public schools. Positive correlations exist between job stress and burnout, and negative correlations with PsyCap. PsyCap partially mediates the stress-burnout relationship, with indicators like hope and resilience playing a mediating role. This research may offer some guidance for educators, institutions, policymakers, and researchers to enhance the well-being of Chinese EFL teachers in various educational settings.