Background: Talented employees create differential value and make contributions to organizations. Talent management has been advocated as an important strategy to engage and retain their employees. Purpose: The purpose of this study was to assess nurses' perception toward talent management and its relationship to their work engagement and retention. Design: A descriptive correlational research design was conducted at Menoufia University Hospital at Shebin-ELkom. Sampling: A convenience sample of 400 nurses was included in this study. Results: It was revealed that nurses had low level of perception towards talent management, more than half of the studied nurses had low work engagement levels, and also the majority of studied nurses had a low level of retention. Conclusion: There was a positive highly statistical significant correlation between nurses' perception toward talent management, their work engagement, and retention. Recommendation: Strategies and policies are required to develop the necessary vision to engage and retain talented nurses.