The paper has examined the role of positive leadership and perceived organizational support in developing psychological capital (PsyCap), and the mediating role of psychological capital (PsyCap) between positive leadership, perceived organizational support (POS), work engagement, and social relationships. We collected data from 375 executives using a structured interview schedule from the eastern part of the Indian manufacturing sector. We analyzed the data using structural equation modelling to test he proposed model. The results support the model empirically, suggesting that positive leadership and perceived organizational support enhance psychological capital, while PsyCap partially mediated the relationship between independent and dependent measures.. It has implications for management to adopt positive leadership, provide support, and value their contribution. Organizations must cultivate an empowering environment through communication, accountability, and motivating employees to enhance their engagement level. Management should also connect with employees to improve social relationships by fostering a positive atmosphere of trust, respect, honesty, and appreciation. The study contributes to the literature by identifying the role of positive leadership and organizational support in developing social capital and engagement via psychological capital in the Indian manufacturing sector. The study supports the theory of psychological capital and social exchange, which helps build a resilient, hopeful, optimistic, and efficient workforce, resulting in better engagement and strong social relationships to achieve a competitive advantage in an uncertain environment, as it provides the necessary resources to cope with the challenges of the environment.