A number of studies have considered the effects of HPWS on firm level performance, however few studies has examined the significant impact of HPWS on employees job outcomes. On recent calls in the literature this study is carried out to inspect the growing impact of HPWS on employees’ outcome of job performance, innovative work behaviors and OCB with a mediating role of work engagement. Specifically, drawing upon the social exchange theory this study tested and assessed how the relationship between HPWS and JP, IWB and OCB are mediated by work engagement. For this purpose employees working in the banking sector at Islamabad and Rawalpindi were sought to respond to a self-reported questionnaire which measured HPWS, JP, IWB, OCB and work engagement. A total of 343 employees’ participated in the survey. Data was assessed by correlation, regression and mediation analysis for type of relationship among variables. Results provided support for hypotheses except one hypothesis regarding mediating effect of work engagement between HPWS & OCB. The hypothesis was rejected. Additionally, these results function as a process wherein HPWS serves to strengthen HRM policies in the benefit of both employees and organization. Further, this paper also presents the theoretical and managerial implications of the study. Supervisor:- Dr. Khurram Shahzad