Previous research studies have demonstrated that internal/external locus of control impacts job satisfaction. The present study thus aims to analyze type of locus of control and its relation with job satisfaction. The study will be of great help for organization to understand and know what type of locus of control their employees has and how it has an impact on job satisfaction.The objectives of this study were: 1-To identify the type of Locus of Control (i.e. Internal or External) present in Public Sector Units (PSU) in Bangalore and 2-To analyze the impact of different type of Locus of Control on job satisfaction of PSU Employees. Further hypothesis was also set to check the relationship between locus of control and job satisfaction. In addition, the relationship between different demographic factors was also examined. The tool used for this study was Loco Inventory. The concept of locus of control by Levenson (1972) was used to develop Loco Inventory (Locus of Control in Organization Inventory). The survey used a questionnaire, which had thirty five statements which highlights the factors that determine the locus of control and job satisfaction level of the employees. The Ratio, ANOVA, and Correlation analysis were used as statistical techniques for analysis.The results indicate that there is a positive correlation between internal locus of control and job satisfaction as well as between External (other) locus of control and job satisfaction. And in case of External (Chance) locus of control and job satisfaction there exists partial positive correlation. As per this study Job satisfaction level among the employees is also good as the mean is 17, which is closer to maximum scale value of 25. As per ANOVA table there is a significant variance between internality and age as well as between externality (chance) and age. There is no significant relationship between internality and demographic factors like gender and education. There is no significant relationship between externality (others) and demographic factors like gender, age and education. There is no significant relationship between externality (chance) and demographic factors like gender and education.