AimsThis study aims to explore the association between the implementation of the adverse event reporting system (AERS), burnout, and job satisfaction among psychiatric nurses, with a focus on examining the mediating effect of workplace violence from patients.BackgroundMany organizational and personal factors contribute to burnout and job satisfaction experienced by nurses. AERS, serving as a key component of organizational‐level quality improvement system, impacts the overall workplace wellness of nurses.MethodsA national sample of 9,744 psychiatric nurses from 41 psychiatric hospitals across 29 provinces in China participated. Burnout was measured by the Maslach Burnout Inventory. Job satisfaction was measured using the Minnesota Satisfaction Questionnaire. Workplace violence was assessed by nurses’ experience of verbal and physical violence. Multilevel linear regression analyses were carried out to examine if AERS impacts burnout and job satisfaction and to identify the mediating role of workplace violence.ResultsAERS was positively associated with job satisfaction, but negatively with burnout and workplace violence. Workplace violence exhibited a positive association with burnout and a negative association with job satisfaction. Mediation analyses indicated that the associations between AERS, burnout, and job satisfaction were mediated by workplace violence.ConclusionsThe application of AERS is associated with a reduction in workplace violence in hospitals, which contributes to the diminished burnout and heightened job satisfaction among psychiatric nurses.Implications for nursing practice and health policyThe study highlights the importance of organizational efforts and mechanisms in promoting nurses’ well‐being. It is necessary for hospital management to create a safe workplace through the implementation of AERS.