<strong>Orientation:</strong> The psychological empowerment of employees might affect their engagement. However, psychological empowerment and employee engagement might also be influenced by job insecurity.<p><strong>Research purposes:</strong> The objective of this study was to examine the relationship between psychological empowerment, job insecurity and employee engagement.</p><p><strong>Motivation for the study:</strong> Employee engagement results in positive individual and organisational outcomes and research information about the antecedents will provide valuable information for the purposes of diagnosis and intervention.</p><p><strong>Research design, approach and method:</strong> A correlational design was used. Survey design was conducted among 442 employees in a government and a manufacturing organisation. The measuring instruments included the Psychological Empowerment Questionnaire, the Job Insecurity Inventory, and the Utrecht Work Engagement Scale.</p><p><strong>Main findings:</strong> Statistically significant relationships were found between psychological empowerment, job insecurity and employee engagement. A multivariate analysis of variance showed that affective job insecurity had a main effect on three dimensions of psychological empowerment (viz. competence, meaning and impact) and on employee engagement. Affective job insecurity moderated the effect of psychological empowerment on employee engagement.</p><p><strong>Practical implications:</strong> The implication of the results is that interventions that focus on the psychological empowerment of employees (viz. meaningfulness, competence, self-determination and impact) will contribute to the engagement (vigour, dedication and absorption) of employees. If job insecurity is high, it is crucial to attend to the psychological empowerment of employees.</p><p><strong>Contribution:</strong> This study contributes to knowledge about the conditions that precede employee engagement, and shows that the dimensions of psychological empowerment (namely experienced meaningfulness, competence, impact and self-determination) play an important role in this regard.</p><p><strong>How to cite this article:<br /></strong> Stander, M.W., & Rothmann, S. (2010). Psychological empowerment, job insecurity and employee engagement. <em>SA Journal of Industrial Psychology/SA Tydskrif vir Bedryfsielkunde</em>,<em> 36</em>(1), Art. #849, 8 pages. DOI:10.4102/sajip.v36i1.849</p>