The board of directors plays a critical role in corporate governance and sustainability, overseeing senior management and ensuring accurate financial reporting. This study explores the impact of board diversity on financial distress among 23 non-financial companies listed on the EGX30 from 2014 to 2023. Utilizing Panel data analysis methods, including Pooled Regression, Fixed Effect, and Random Effect models, the study finds that gender diversity and the presence of independent directors significantly reduce financial distress, enhancing financial stability and resilience. In contrast, board size and tenure do not show a significant impact. These findings suggest that incorporating gender diversity and independent directors into the board structure provides strategic advantages, helping firms navigate economic uncertainties and regulatory challenges. This research underscores the importance of structural and demographic diversity within boards and paves the way for further studies in broader economic contexts, potentially leading to more effective governance practices in various corporate settings.