Managers are interested in how to develop relationship with customers due to importance of social media based brand communities and changing landscape of communication. Similarly with online brand community platform a new concept emerged i.e. customer brand engagement, focusing on expanded domain of relationship building. In this study we have provided insights about the role of social media based brand communites in customer perception and behavior with regards to identification and engagement with community. In this paper we have developed and estimated a model that whether value creation practices including social netwroking practices, brand use, impression management and commnuity engagegment within social media based brand communities and customer engagement have influence on customer relationship buidling. The paper describes the way brand community identification influences value creation practices in brand communities as well as on customer brand engagement (CBE) and relationship quality. Data was collected through E-questionnaire and 176 valid responses were used for analysis. The data was analyzed using structural equation modelig showing a positive relationship between brand community identification (BCI) and value creation practices including community enagagement, brand use and social networking practice. Moreover, insignifacnt effect of BCI on impression management practices was found. Study discovers signifcant relationship bewteen BCI and CBE. Value creation practices excluding social networking practices and CBE have significant and positive effect on brand relationship quality. This study will provide guideline to managers to enhance brand relationship in technologically advanced world.