This study aims to explore how servant leadership (SL) influences employee engagement (EE) through the mediating influence of self-efficacy (SE) among banking personnel in Pakistan. Prior research indicates that servant leadership fosters greater self-efficacy, which consequently enhances engagement levels. Nonetheless, the direct and mediated relationships between servant leadership and employee engagement remain insufficiently examined. Therefore, this research seeks to assess the effect of servant leadership on engagement among Pakistani bank staff, emphasizing the mediating contribution of self-efficacy. Data were gathered from both private and public banks through a multistage sampling approach. The analysis, performed with SmartPLS, demonstrated that servant leadership positively affects employee engagement. Moreover, self-efficacy plays a significant and positive mediating role in this link, consistent with the conservation of resources theory. Consequently, bank leaders are encouraged to adopt servant leadership behaviors to strengthen employees’ work involvement and commitment.