The purpose of this research is to understand the concept of organizational health (OH). Further, this research developed a construct of OH derived from factors identified in extant literature. Data from 121 scientists working in engineering and scientific divisions of Council of Scientific and Industrial Research (CSIR), India, were collected to test the internal consistency, to confirm factor structure and to assess convergent and divergent validity of the construct. The results of Confirmatory Factor Analysis (CFA) produced seven factors of organizational health, namely, managerial efficacy, amiable power relations, HRD orientation and practices, team orientation, organizational values, innovativeness and morale. The study has been conducted in emerging economy setting. A comparative analysis of organization like CSIR in developed country can be carried out for further research using the same construct. This will help in validating the construct developed in this research. To the best of the author’s knowledge, this is the only study that has developed a comprehensive construct of organizational health for an Indian R&D sector.