The literature has shown that personality is linked with subjective well-being. However, the nature of this link and its underlying mechanisms require further investigation. This study examined the potential associations between personality traits and facets of subjective well-being, when the effects of the demographic variables were taken into account. This study also tested the mediating role of sleep quality in these associations. In late 2013, a national probability sample of Australian residents (N = 13,424; M age = 44.3 years; 47% male) completed a questionnaire comprising measures of personality, subjective well-being, sleep quality, and demographic variables. Structural equation modeling showed that when controlling for the demographic variables, each personality trait was uniquely related to facets of subjective well-being. The results also demonstrated that sleep quality partially mediated these associations. Individuals showing higher levels of extraversion, conscientiousness, and emotional stability reported better sleep quality and greater subjective well-being, whereas individuals displaying greater agreeableness reported worse sleep quality and poorer subjective well-being. These results differentiated the personality traits in terms of their connections with the facets of subjective well-being and highlighted the potential role of good sleep quality in promoting subjective well-being.