As solid‐state batteries (SSBs) emerge as leading contenders for next‐generation energy storage, chemo‐mechanical challenges and instabilities at solid‐solid interfaces remain a critical bottleneck. Ensuring sufficient interfacial contact within composite cathode architectures often requires the application of high stack pressures, posing a significant hurdle in the development of viable, large‐scale SSBs. In this work, the impact of stack pressure is investigated on the performance of solid‐state composite cathodes comprised of single‐crystal LiNi0.5Mn0.3Co0.2O2 (SC‐NMC532) active material particles and a Li6PS5Cl (LPSCl) solid electrolyte phase. By unraveling the complex interplay between stack pressure and microstructure‐dependent mechanisms, the profound influence on interfacial resistances, cathode utilization dynamics, current constriction effects, and lithiation heterogeneities are revealed. Through a comprehensive examination of coupled reaction kinetics and transport interactions at the electrode and particle length scales, the implications of stack pressure at different C‐rates and microstructural arrangements are elucidated, thereby delineating the limiting mechanisms that are prevalent at low stack pressures. This work underscores the critical role of optimizing the cathode microstructure to mitigate the chemo‐mechanical challenges associated with SSB operation at low stack pressures, offering valuable insights and design guidelines for the development of high‐performance SSBs.