In the present business scenario, it has been proved time and again that perceived organisational support (POS) has a significant influence on work engagement. But, the role of intervening variables in this relationship has rarely been examined. This article proposes a theoretical framework that explores the role of psychological capital as an intervening variable in the relationship between POS and work engagement. Psychological capital (PsyCap) is a positive core construct consisting of the psychological resources of efficacy, hope, optimism, and resilience. The role of PsyCap as a mediator for influencing work engagement imparts a crucial tool to the HR managers as PsyCap can be developed through training. Also, when an employee feels engaged in his work primarily because of his PsyCap, it would be more deeprooted and lasting than from an organisational level variable such as POS. This paper also discusses the influence of POS on each construct of PsyCap. In addition, this study provides insight into the process through which employees PsyCap influences his engagement levels. It also has implications for managers who struggle to keep their employees engaged.