This study aims to examine and analyze the effect of work engagement and compensation on employee performance mediated by work motivation on PT. Cebong Kayuindo Ajibarang employees. The population in this study are production employees at PT. Cebong Kayuindo Ajibarang with 294 employees. The sample obtained in this study were 143 employees using purposive sampling technique. The analysis used is multiple linear regression analysis and sobel test. The results showed that work engagement and compensation have a positive and significant effect on work motivation. Work engagement, compensation, and work motivation have a positive and significant effect on employee performance. Sobel test results show that work engagement and compensation has a positive and significant effect on employee performance through work motivation.