Earthquake source characteristics provide a valuable constraint on crustal stress and regional plate tectonics. Earthquake source studies in Yukon and northern British Columbia have been limited by sparse seismic network coverage. In this work, we leverage recent seismic network improvements to estimate focal mechanisms for small- and moderate-magnitude (M > 2.0) earthquakes from P-wave first-motion polarity data. We invert these data within a probabilistic framework to rigorously quantify mechanism uncertainties. Subsequently, probabilistic earthquake focal mechanisms are used as input for inversions for the orientation of principal stress axes, and stress shape ratio, for spatial windows throughout the region. We implement a novel, data-driven approach to propagate focal mechanism uncertainty in stress inversion. Our results improve the spatial coverage of existing earthquake focal mechanisms and enable an orogenic-scale study of crustal stress near the Yakutat–North America collision. Overall, the region is characterized by a transpressive stress regime. Maximum horizontal compressive stress orientations exhibit a pattern orthogonal to the Yakutat collision syntaxis. Stress inversion results also reveal an abrupt change in orientation east-to-west, which we interpret as a change in stress regime across the Fairweather–Connector–Totschunda fault system that is likely related to coupling between the subducting Yakutat slab and North America. This work improves our understanding of potential earthquake hazards in southwestern Yukon and the surrounding region.