Relationships are fundamental to organizational functioning, yet as telecommuting and other forms of virtual work become increasingly popular, research has not yet focused on how the virtual context might alter relationships so as to impact important work outcomes. This study therefore examines the role relationships play in mediating the link between the extent of telecommuting and job satisfaction. In doing so three fundamental types of relationships maintained by employees are investigated—those with managers, coworkers, and family. Regression analysis of field data from 294 telecommuting employees in a large telecommunications company revealed the anticipated inverted U-shaped relationship, mediated by leader-member exchange quality, team-member exchange quality, and work-family conflict. Copyright © 2006 John Wiley & Sons, Ltd.