Aims: This study correlated the extent of work engagement and level of teaching performance in the new normal of public school Physics and determined the challenges encountered in teaching Physics. Study Design: This quantitative study utilized a descriptive and correlational research design. Place and Duration of Study: This study was conducted among Physics teachers in the large division in Central Philippines during the school year 2021-2022. Methodology: Standardized questionnaire, validated and reliability-tested researcher-made checklist, and RPMS results were used to collect data needed for the study.  Descriptive analysis using mean and standard deviation were used for the extent of work engagement and level of teacher performance while frequency count and percentage distribution were used for the challenges in teaching Physics. Spearman rank correlation determined the significant relationship between work engagement and teaching performance.  Results: Overall, the extent of the work engagement of the Physics teachers is very often (M=4.88; SD=0.99).  Meanwhile, the overall level of teaching performance is very satisfactory (M=4.46; SD=0.26).  Moreover, there is a significant relationship between work engagement and teaching performance [ρ(62)=0.331, p=0.008].  Topping the challenges in teaching Physics are the voluminous paperwork and extended working hours (64 or 75%), diversity of learners (45.3%), and adaptability to educational trends (39.1%). Conclusion: This study discovered a significant relationship between work engagement and teaching performance.  Hence, when the work engagement of teachers is greater, their teaching performance level also escalates.  Vigor, dedication, and absorption are all contributory to work engagement, which influences teaching performance.  Age, as well as years of teaching experience, matters a lot in work engagement.  The longer one stays in the teaching profession, the more he or she becomes adept at work.  Also, the educational qualification or preparation of a teacher is another factor influencing work engagement as seen clearly in the difference in the scores between Physics majors and non-Physics majors.