This research investigates the pivotal role of psychological capital (Psychological Capital)—comprising self-efficacy, hope,optimism, and resilience—in shaping employee well-being and performance outcomes within Indian academic sectors especially Universityand College Libraries. Adopting a cross-sectional survey design (n = 150), the study assesses how Psychological Capital correlates withjob satisfaction and self-reported performance, while also testing the mediating role of job satisfaction using Hayes' PROCESS macro.Results reveal strong positive associations between Psychological Capital and both satisfaction and performance, with job satisfactionpartially mediating this relationship. The study affirms the strategic value of developing Psychological Capital as an internal resource thatenhances employees’ adaptive capacities and drives performance in high-pressure work environments. These findings carry significantimplications for human resource development and organizational psychology, advocating for structured interventions and training programsaimed at cultivating Psychological Capital to foster a more resilient and productive workforce.Keywords: Psychological Capital; Self-Efficacy; Optimism; Hope; Resilience; Job Performance