This study aims to examine relationship between psychological capital with work engagement on
generation Y at manufacture industry. Independent variable in this study was
Psychological Capital (Luthans, et al., 2007), while the dependent variable was work engagement
(Schaufeli and Bakker, 2004). Data came from 82 employees of Y generation with an age range
between 23-32 years. Intruments that used in this study was an online questionnaires, where the
scale of PsyCap using PCQ and work engagement scale using UWES questionaire. Data in this
study was analyzed using statistical techniques Spearman's Rho & Pearson Product Moment
correlation. The result from the analysis show that significance value between PsyCap and WE is
0.00. It can be concluded that there is a relationship between psychological capital and work
engagement on Generation Y employees at manufacture industry. The result also
shown that PsyCap and work engagement have positive relationship (0,41) which means if there is
an enhancement in PsyCap, it will be followed by an enhancement in work engagement.