Human resource has become the most valuable possessions of any organization for their long-term survival and for becoming competitive. Now organizations main focus is on the development, retention, and management of human resource in such a way that will have more productive and profitable impacts on organization performance. In 21st century concepts like organizational performance and its relation with human resource management has become the most demanding research topics. To this end, the present study highlighted the important contribution of the psychological resources of employees in organizational performance. The main purpose of this study was to determine the mediating effect of psychological capital in the relationship between intellectual capital and organization performance with reference to the software industry with Pakistan?s context. Survey type of research was applied for data collection through a questionnaire. A convenience sample of 320 software developers from software companies registered with P@SHA participated in this research and data was analyzed by applying descriptive and inferential statistics.This quantitative study was built on the theoretical foundation of resource-based theory and social network theory and also advocates the mediation model of Andrew Hayes for reporting the mediating role of psychological capital in the relationship between intellectual capital and organizational performance Consistent with previous literature correlation results indicated that there is a significant relationship between the three constructs. Moreover,the regression analysis results confirmed that psychological capital mediates the relationship between intellectual capital and organizational performance. It is concluded from results insertion of psychological not only increase organizational performance, but it also boosts the intellectual capital of employees. So, it is empirically confirmed that the development of psychological resources of employees has multiple positive impacts on employees and organizational performance. Keywords: Intellectual capital, Psychological capital, Organizational performance, Networking theory, Mediation, Gender