Objectives: Construction is one of the unsafe industrial sectors, causing a considerable amount of harm to its workforce and organizations globally. Only a handful of research evidence has been found evaluating individuals' cognitive and engagement-related constructs to improve occupational safety. Psychological Capital (PsyCap) can have a promising impact on construction workers' psychological health, possibly leading to positive performance. Limited studies have tested PsyCap and work engagement regarding safety specifically in the context of the construction industry, with non-harmonious findings. Methods: The proposed framework was assessed through the structural equation modeling (SEM) technique along with bootstrapping for mediation analysis. Responses were collected from different states of Malaysia from 345 construction workers. PsyCap dimensions (hope, efficacy, resilience, and optimism) were measured in connection with safety compliance and safety participation, with the mediating role of work engagement. Results: According to findings, hope, optimism, and work engagement have a positive and significant impact on safety compliance. Also, hope, self-efficacy, resilience, optimism, and work engagement have a positive and significant impact on safety participation. Further, self-efficacy and optimism both have a positive impact on work engagement. Conclusions: PsyCap can be a possible predictor for work engagement, which may enhance safety-related behavior. PsyCap should be treated as a multidimensional instrument to enhance occupational safety. In-depth deliberation is needed by the organization while applying PsyCap to enhance employees' work engagement as well as safety behavior. Practical interventions based on interactive training are proposed to enhance construction industry safety. Other industries can also adapt suitable dimension(s) of PsyCap to safety behavior improvements. Copyright © 2022 Saleem, Isha, Yusop, Awan and Naji.