This research paper aims to examine the mediating role of employee empowerment in thernrelationship between employee engagement and employee performance: A Case of commercialrnbank of Ethiopia. Clear understanding of these human resource practices would enable the bankrnto develop and understand suitable HR strategies, business models, processes, and pilot projects.rnTo address the research objective 390 sampled respondents were selected. Purposive andrnproportional sampling techniques were used to get the required sample size. 390 questionersrnwere distributed; from which 387 sample respondents replied appropriately to the questionnaire.rnData gathered were analyzed based on these 387 responses using SPSS 20 software package.rnDescriptive statistics and explanatory research approach were employed. All out puts werernreported using frequency, correlation and multiple linear regression analysis results such asrnANOVA and coefficient and regression results. The result indicates that employee engagementrn(vigor, absorption and dedication) and mediating variable (employee empowerment) were goodrnexplanatory variables of the HR practices influencing employee performance. The relationshiprnbetween employee engagement and employee performance in achieving best performance wasrnmediated by employee empowerment partially. Although the effect of this mediator on thernemployee engagement and employee performance relationship is small, the statisticalrnsignificance tells that the addition of employee empowerment as a mediator influences thernrelationship between the dependent and independent variables. Employee empowermentrnmediates the relationship between employee engagement and employee performance positively.rnAlso, it can be stated that more engaged and empowered employees becomes more performer inrntheir job.rnThe study recommended that the company has to give more emphasis in Career development,rnsupport employees in their work and growth, encouraging employees at their work for theirrncareer development respect to their best work and achievement by giving reward andrnrecognition for the employees. The bank should deliver different opportunities to learn and growrnfor their work to improve employee engagement level and have engaged employees CBE shouldrndo more on all the employee empowerment benefits.