This study aimed to investigate the impact of workplace fun on life satisfaction through employee engagement in a gender interaction effect model. It was argued that workplace fun has a positive influence on life satisfaction through increased employee engagement. Moreover, gender effects were also tested in the relationships. This study was quantitative in nature. Under a cross-sectional study approach, data of 238 respondents collected from service sector employees were analyzed. Findings supported the argument that workplace fun leads to an improved sense of life satisfaction when individuals experience a positive state of mind and engagement at work. Moreover, fun leading to improved life satisfaction was higher among males than females. These findings implied that a fun attitude may have an indirect role in improving the life satisfaction of engaged employees suggesting that HR professionals need not seek workplace fun as a coercive practice. This study contributed to the literature on the use of workplace fun in improving life satisfaction. It also explained employee engagement as an underlying psychological mechanism that connects workplace fun with life satisfaction.