Orientation: The predominant theme of this research attends to the role of perceived positive leadership behaviour in relation to employee outcomes (psychological empowerment, work engagement, and satisfaction with life). Research purpose: The objective of this study was to investigate whether perceived positive leadership behaviour could predict psychological empowerment, work engagement, and satisfaction with life of employees in a chemical organisation in South Africa and whether positive leadership behaviour has an indirect effect on employees work engagement and satisfaction with life by means of psychological empowerment. Motivation for the study: The motivation for this study arose from the evident gap in academic literature as well as in terms of practical implications for the chemical industry regarding positive leadership behaviour, psychological empowerment, work engagement and satisfaction with life of employees. Research design, approach and method: A cross-sectional survey design was used with a convenience sample (n = 322). Structural equation modelling (SEM) was used to examine the structural relationships between the constructs. Main findings: Statistically significant relationships were found between positive leadership behaviour, psychological empowerment, work engagement and satisfaction with life of employees. Positive leadership has an indirect effect on work engagement and satisfaction with life via psychological empowerment. Practical/managerial implications: This study adds to the lack of literature in terms of positive leadership, psychological empowerment, work engagement and satisfaction with life within a chemical industry. It can also assist managers and personnel within the chemical industry to understand and perhaps further investigate relationships that exist between the above mentioned concepts. Contribution/value-add: It is recommended that leadership discussions, short training programs and individual coaching about positive leadership and particularly psychological empowerment take place.