This research examines how transformational leadership (TL) influences work engagement (WE), particularly through the lens of employee empowerment. In the wake of the recent global pandemic, organizations have sought adaptive strategies to recover lost business, with leadership emerging as a pivotal factor in motivating employees. Focusing on the Indian IT sector, a conceptual model was proposed and empirically tested using data from 256 employees in southern India. Psychometric evaluation was conducted via structural equation modeling (Lisrel), followed by analysis using Hayes’s PROCESS macro. Findings reveal that TL positively impacts both employee empowerment and WE, with empowerment serving as a mediator in the TL–WE relationship. Moreover, the study identifies moderating effects, showing that work experience influences the strength of the TL–WE link, while gender affects the relationship between TL and empowerment. The results offer important insights for advancing leadership theory and for guiding practical strategies to enhance employee engagement.