Purpose: The study aims to examine the mediating effect of psychological well-being (PWB) on the relationship between teamwork skills and student engagement (SE) in higher education institutional setups. Design/methodology/approach: The study used a triangulation mixed-methods approach. Data were collected from final-year students pursuing post-graduation and graduation in private colleges in India. In the main study, quantitative data was gathered from 276 students through a survey. The relationship among the variables-teamwork skills, SE and PWB was empirically validated through path analysis; mediation was also conducted. In the auxiliary study, qualitative data was gathered through focus group sessions and was analyzed using thematic analysis. Findings: Results depicted that teamwork skills positively predict students' engagement with their academic program. Additionally, PWB partially mediates the relationship between teamwork skills and SE. Originality/value: The study was conducted to expand understanding of aspects related to promoting students' engagement in HEIs in Delhi and Haryana through being attentive toward teamwork skills development and through taking care of students' PWB.