The end of the twentieth century and the beginning of the twenty-first century witnessed a lot of financial collapses of major companies along with global financial crises. which drew attention towards the cons of financial engineering as the main cause of these problems on the one hand, and the application of corporate governance principles as a solution to them on the other hand. The use of financial engineering is not without risk, so it is necessary to control them and their risks. Therefore, there is a need for the principles of corporate governance that may help to achieve greater internal control over the activities related to financial engineering within the company. Indeed, this research aims to highlight the interaction between both financial engineering and corporate governance, given that financial engineering serves governance by providing it with new mechanisms capable of responding to new business challenges and the role of governance principles in controlling financial engineering products and monitoring the risks associated with them.