This study examines the impact of HR audit practices on employee performance in selected manufacturing units of Madhya Pradesh. The research adopts a quantitative approach using a structured questionnaire administered to employees and HR personnel. Statistical tools such as correlation and regression analysis were used to test the proposed hypotheses. The findings reveal that HR audit practices significantly influence employee performance, job satisfaction, motivation, productivity, and operational efficiency. The results also indicate that effective HR audit outcomes strengthen key HR functions, including recruitment, training, and performance appraisal. Additionally, gaps identified during the audit process negatively affect employee performance, highlighting the need for continuous improvement in HR systems. Overall, the study confirms that HR audit serves as a strategic tool for enhancing organizational effectiveness and creating a performance-driven work culture in the manufacturing sector.