This study aims to explore the effect of psychological empowerment on both in-role and extra-role performance through the mediating role of employee engagement. This study is one of the first attempts to investigate the mediating role of employee engagement between psychological empowerment and extra-role performance and in-role performance. Drawing upon the social exchange, the affective event theory, and the broaden-and-build theory a conceptual model was developed and empirically tested. The study was conducted in Lebanon and an online questionnaire was used to collect data from graduates working in different industries. A total of 152 complete questionnaires were obtained and analyzed. The quantitative data collected were analyzed using SPSS and Smart PLS to empirically examine the proposed relationships. The results of the proposed direct relationships were significant as well as the mediating relationship. The findings of this study provide theoretical and practical contributions.