Sleep is an important process that can influence and be influenced by daily events and emotions. We examined the bidirectional relationships between sleep, daily events, and emotions with a daily diary method completed by 181 mothers (Mage = 41.91, SD = 5.06). They answered morning and evening questionnaires for 1 week at three different points in time separated by nine months each, 21 days in total. Measures of sleep quality and emotional experiences each morning were assessed, and they reported on their best and worst experience of the day, peak emotional responses to these events, and affect in the evening. Sleep behavior, including total sleep time and sleep efficiency, was objectively quantified using wrist actigraphy. Multilevel modeling analyses showed that longer sleep duration and better subjective quality predicted greater positive emotions and lower negative emotions upon waking, and lower levels of peak perceived stressfulness, but not peak positivity ratings. Daily experiences did not predict sleep duration. Conversely, negative affect in the evening and greater peak perceived stressfulness during the day predicted worse sleep quality that night, whereas positive affect and positive events were not related to sleep. Although correlational, these findings suggest that good sleep can improve waking affect and help mitigate the impact of stressful experiences but does not amplify responses to the positive events of the day. In turn, daily perceived stress reactivity impairs sleep quality. These novel findings show stronger bidirectional relationships between sleep with daily stress, than sleep with daily positivity.