Abstract
In this study, we examined the relationship between transformational leadership, employee engagement and employee performance. Furthermore the mediating effect of psychological ownership in the dimensions of self-efficacy, belongingness, self-identity and accountability are studied in the relationship of these variables with employee performance. The empirical findings of data, collected through questionnaires from sample of 270 employees and managers of telecom companies indicated significant relationship between transformational leadership, employee engagement practices and employee performance. Results also supported the mediation of psychological ownership in relationship of these variables. Managerial implications and future research directions are discussed.