This chapter advances understanding of person–environment misfit by framing it through self-regulation theory and goal hierarchies. The authors argue that misfit reflects a discrepancy between internal standards and external conditions, and that people are motivated to reduce such discrepancies through cognitive, affective, and behavioural regulation. Integrating self-regulation and person–environment fit research, the chapter develops a hierarchical model that distinguishes misfit at three levels: top (value or ideological incongruence), middle (interpersonal and relational dissimilarity), and bottom (skill or task mismatch). Each level elicits distinct forms of self-regulatory response, from sensemaking and identity negotiation to interpersonal adjustment and task adaptation. The authors demonstrate that misfit is not inherently negative but may generate constructive outcomes, such as innovation or learning, depending on its level and content. By mapping misfit within a goal hierarchy, the chapter provides a unifying framework linking individual motivation, emotion, and behaviour to environmental correspondence. This approach explains why some employees endure, reinterpret, or even embrace misfit while others disengage or exit. Overall, it contributes a theoretically integrative perspective that connects multilevel experiences of misfit with fundamental self-regulatory processes shaping work attitudes and outcomes.