Today’s organizations are operating in a very dynamic and highly competitive environment. To remain relevant in the market, they have to be able to respond quickly to ever changing customer demands. Employee empowerment is one of the ways used by organizations for attracting and retaining employees as well as enabling them improve their performance. Lagos State Teaching Hospital is an organization that offers essential health services that support other sectors of the economy. This study therefore aimed at determining the effect of employee empowerment on job satisfaction at Lagos State Teaching Hospital. Specifically, the study aimed at determining the effect of monetary compensation, training, involvement of employees in decision making and provision of proper tools and equipment to employees on employees’ job satisfaction. The research adopted descriptive research design. The target population was all employees of Lagos State Teaching Hospital who were 130 employees where census survey was done. Data was collected using questionnaires on a drop and pick method. Data analysis involved both descriptive and inferential statistics. The study concluded that there is a significant relationship that exists between employee empowerment and job satisfaction. Based on the findings it is recommended that organizations should empower their employees to enable them achieve job satisfaction if the organization wants to remain competitive in the market place.