The existing presenteeism literature has predominantly focused on its negative impacts or its potential positive effects on performance evaluations. However, little is known about its functional impact on employee wellbeing. Drawing on self-enhancement theory, we proposed and examined the positive effects of productive presenteeism—defined as the extent to which employees are able to complete tasks and meet objectives while working during ill-health—on workplace wellbeing. In a time-lagged field study involving data from 555 leader-follower dyads, we found that productive presenteeism positively influenced employees’ workplace wellbeing through perceived presenteeism credit. Moreover, this indirect effect was stronger when sickness absenteeism legitimacy was high. These findings highlight the functional aspects of presenteeism, offering theoretical and practical implications for understanding how and when presenteeism can be managed as a sustainable workplace behavior.