Purpose: Cultivation of a learning culture and subsequent enhancements in employee performance can be translated through employee engagement. This study aims to examine the mediating role of employee engagement in the relationship between the learning culture and employee performance. Design/methodology/approach: This research adopted a quantitative approach, wherein 450 questionnaires were distributed among employees in both public and private sectors in Nepal. A total of 389 questionnaires were returned, followed by two to three reminders. Convenience sampling was utilized, and the data was collected through a questionnaire survey. Descriptive analysis and Structural Equation Modeling -- Path analysis was used to describe and hypotheses testing. Data was analyzed using SmartPLS 4.0 and SPSS 24v. Findings: It was found that employee engagement has a mediating effect on the relationship between the learning culture and employee performance. Learning culture also has a positive influence on employee engagement that eventually affects the performance of the employees. This conclusion suggests that fostering a learning culture within an organization should be focused on cultivating an environment that promotes active employee participation, thereby enhancing overall employee performance. Originality/value: This article provides significant insights into the cultivation of a learning culture inside firms, with a specific focus on establishing an atmosphere that fosters active employee engagement to improve overall employee performance in the service sector. This tool has the potential to facilitate further investigation and progress within the area, while also promoting the adoption of evidence-based learning practices and their associated implications.