<p>Life satisfaction is central to well-being, yet how punishment sensitivity is associated with life satisfaction remains insufficiently understood. Across two studies, we examined concealment-related processes that may help explain this association at different levels of analysis. In Study 1 (<i>N</i> = 284), punishment sensitivity was positively associated with self-concealment and negatively associated with life satisfaction; self-concealment was also negatively associated with life satisfaction. A mediation model indicated a significant indirect association linking punishment sensitivity, self-concealment, and life satisfaction, even after controlling for negative affect, age, and gender. In Study 2 (<i>N</i> = 249), participants recalled either a high-burden or low-burden secret. Participants in the high-burden secret recall condition reported greater cognitive preoccupation and lower state life satisfaction than those in the low-burden condition. Cognitive preoccupation partially explained the association between the high-burden secret recall condition and lower state life satisfaction. Moderated mediation analyses further showed that punishment sensitivity amplified the association between the high-burden secret recall condition and cognitive preoccupation, with conditional indirect effects emerging at mean and high levels of punishment sensitivity. Together, the findings are consistent with an RST-informed account in which punishment sensitivity is associated with both enduring self-concealment tendencies and immediate cognitive costs in secrecy-related contexts.</p>