This study supplements the existing conceptualisation of skills mismatch based on cognitive evaluations (being underskilled or overskilled) with an affective aspect that captures how workers cope with skills (mis)match situations (feeling overchallenged or underchallenged) and an analysis of skills mismatch situations' influence on job satisfaction of workers with higher education (HE) and vocational education and training (VET). Using the German BIBB/BAuA Employment Survey 2018, the results indicated that underskilling by itself was not negatively associated with job satisfaction; however, underskilling in combination with feeling overchallenged exerted a significant negative influence on job satisfaction. This corroborates the approach of differentiating challenging (i.e. non-detrimental) jobs from overchallenging jobs. Overskilling was associated with penalties regarding job satisfaction, whereas overskilling in combination with underchallenging jobs produced a remarkably larger negative impact on job satisfaction. Moreover, overskilled HE workers received larger penalties regarding job satisfaction than those received by overskilled VET workers.