Examining how employee engagement influences the link between DHRM and employee performance in the banking sector in the Coimbatore area is the aim of this study. Employee engagement and work performance are significantly impacted by digital HRM practices, according to data gathered from banking industry employees in Tamilnadu using a reliable and accurate questionnaire. The impact of digital HRM methods on employee performance was therefore acknowledged to be partly moderated by employee engagement. Competent employees who are aware of their performance level are motivated to do better at work, it was found. The study theoretically called for further research to examine the ways in which employee engagement and other HRM techniques impact work performance. Empirically, businesses are expected to conduct training sessions and assess employee performance using digital technologies.