The main objective of this research was to analyze the Mediating role of Employee Engagement on the relationship between Reward and Organizational Performance: The case of Dashen Bank SC - analyzing the effect of Financial as well as Non-Financial Reward on Employee Engagement and analyzing the effect of Employee Engagement and Reward on Organizational Performance were specific objective of the study. To succeed the main objectives, recognized questionnaires were adapted from previous study works. Descriptive plus explanatory research design was used to quantitatively analyze the relationship between the research variables. Stratified random sampling technique was applied to select samples from five strata of Head Office and District Offices of Dashen Bank SC exist in Addis Ababa area. Based on valid data obtained from 341 employees of Dashen Bank SC, and from the overall analysis, it was established that Financial as well as Non-Financial Rewards have positive and statistically significant effect on employee engagement. Employee Engagement has a positive and significant effect on Organizational Performance as evidenced by the study. In addition to that the Reward also has a positive and significant effect on organizational Performance. The paper concluded that Employee Engagement partially mediates the relationship between Reward and Organizational Performance. Finally, the researcher recommended the bank to avail well balanced Reward including both Financial and Non-financial and integrate it with employee engagement for better organizational performance, and the researcher also recommend periodic research on employee engagement to be conducted by the Bank.