The main objective of this study was to analyse effects of psychological contract fulfilment on employee engagement in Dashen Bank SC. Cross-sectional survey research design was employed to conduct this study. Of 215 employees of Dashen Bank in Bahir Dar City branches, all were included to participate in this study. Questionnaires were distributed with the support of Google form and in hard copies. The researcher was able to collect 205 questionnaires from respondents. The data collection instruments were tested for validity and reliability. After data cleaning and preparation, the data set was encoded into the Statistical Package for the Social Sciences (SPSS) for analysis. The researcher used descriptive analysis, Pearson correlation following bivariate correlation and multiple linear regression analysis to analyse the data. The results of this study show that there is a positive and significant relationship between overall psychological contract fulfilment and employee engagement. Employee engagement also has a positive and significant relationship with transactional and relational psychological contracts. The overall result shows that psychological contract fulfilment has significant effects on engagement of employees of Dashen Bank SC Bahir Dar City branches. Based on the findings of the study, recommendations that are relevant for the management of the bank are forwarded in line with the problems of psychological contract fulfilment.