A performance appraisal system (PAS) is crucial to an organization's overall success. A proper rating system could boost nurses' job satisfaction and sense of empowerment to help them deliver better care to patients. This study aimed to assess Nurses' Performance Appraisal System and its association with Their Empowerment and Job satisfaction. Design: A descriptive correlation research design. Setting: The study was carried out in Sohag University Hospital. Subjects: A systemic random sample was used to select 300 staff nurses, and a convenience sampling technique was used. Tools: I) Nurse's personal data, II) Performance Appraisal Questionnaire, III) Nurse's empowerment Questionnaire, and IV) Job Satisfaction Questionnaire. Results: The majority of the study participants expressed satisfaction with the present performance appraisal form. Staff nurses expressed little job satisfaction. In the sample under investigation, there was a substantial correlation between the performance appraisal system and nurses' satisfaction. The power of nurses was moderate. Furthermore, there was a significant relationship between the performance appraisal system and nurses' empowerment. Conclusion: In the study setting, the performance appraisal system is successfully implemented, which has a good impact on the nurses' sense of empowerment and job satisfaction. Recommendations: It is advised that a system of performance evaluation will be adopted.  Continuous training to deal with the changes that occur daily in the nursing field, developed performance appraisal systems, continuous supervision, and appraisal interviews should be held with nurses at least once a week to discuss their job performance and foster their empowerment and job satisfaction.