Reviewing the literature reveals that the role of teacher assessment literacy (TAL) in teacher job stress (TJS) and teacher job burnout (TJB) among English as foreign language (EFL) teachers in Iran has remained largely unexplored. As a result, this mixed-methods study investigated the association between TAL, TJS, and TJB in the Iranian EFL context. For the quantitative section, 413 EFL teachers, including 221 males and 192 females, were randomly selected. They completed the Teacher Assessment Literacy Questionnaire, the Teacher Job Stress Scale, and the Teacher Job Burnout Inventory, and the data was analyzed using structural equation modeling. For the qualitative part, 18 EFL teachers who joined the quantitative part participated in a focus group interview, and their responses were analyzed through a content analysis approach. Results indicated that TAL is a strong predictor of TJS and TJB. Specifically, the findings indicated that TAL was positively linked to all the sub-scales of TJS and TJB. Additionally, the complementary qualitative results yielded four themes: "TAL promotes job productivity," "TAL raises teachers' social face," "TAL enables teachers to manage the class efficiently," and "TAL brings positive wash-back." The findings suggest that TAL, TJS, and TJB should be incorporated in pre-service and in-service teacher training courses in EFL education.