In today's competitive work environment, there is a paramount importance for the employee empowerment, since it can give an organization a sustainable competitive edge. The overall aim of this study is to examine the influence of employee empowerment on affective commitment and employees' behavioral intention to stay. A quantitative research design was used via a structured questionnaire and hypotheses were simultaneously tested on a sample of 248 bank employees, using structural equation modeling (SEM). The findings of this study confirmed that psychological empowerment positively influence the affective commitment, and employee's intention to stay, thereby underscores an avenue for managers to empower their human resource and provide such an environment where they can participate in decision-making, giving them freedom to handle their problems, and opportunity to use their skills and abilities. Increase in employee empowerment, in turn serves as the veins for higher employees affective commitment and higher intention to stay with the organization. This study is cross-sectional and so a longitudinal investigation of the understudy construct could be demanded. In addition, future research in other service sectors is a need to be conducted on a high note to make a wide generalization of the findings.