Abstract
Drawing on social cognitive theory, this study extends our understanding of the relationship between ethical leadership and employee work engagement, by exploring self-efficacy as an important mediating variable. In addition, we propose that the quality of LMX moderates the relationships such that the direct and indirect relationships between ethical leadership, self-efficacy, and work engagement are stronger when the quality of LMX is high. Data collected in two-waves from 373 respondents working in different manufacturing organizations of Pakistan supported our hypothesized theoretical model. Theoretical and practical implications are discussed.