Background: Psychological capital was recently identified as a core construct in the literature of positive psychology. However, there is considerably less evidence of its positive effects on job embeddedness and performance among nursing personnel. The study aimed to explore the relationships between psychological capital, nurses' performance, and job embeddedness. Subjects and Methods: Design: A correlational descriptive research design was utilized to conduct this study.  Setting: The study was applied in the Medical Department at Port Said University Hospital.  Sample: A convenience sample that included 50 nurses who were working in the previously mentioned settings. Four tools of data collection: (I) Demographic data assessment, (II) Psychological capital (PC) questionnaire, (III) Job embeddedness (JE) scale, and (IV) Employee performance (EP) questionnaire. Results: They revealed that a strong relationship was detected between psychological capital, nurses' performance, and job embeddedness. Conclusion: It was concluded that higher psychological capital increases nurses' performance and job embeddedness. Job embeddedness significantly mediates the link between psychological capital and nurses' performance Recommendations: the current study suggested improving psychological capital among nurses to increase nurses' performance and job embeddedness. Providing new insights into the mechanism by offering practical and theoretical perceptions about psychological capital and employee performance in the healthcare sector can be helpful to all medical administrators and supporting professionals.