Background: Digital transformation in education has intensified workload demands and the challenges of technology adaptation, heightening risks to educators' psychological well-being worldwide. Psychological Capital (PsyCap), comprising self-efficacy, hope, optimism, and resilience, has gained recognition as a key personal resource associated with educator work engagement (WE) and sustained performance. Objective: This systematic literature review (SLR) synthesizes empirical evidence on the associations between PsyCap and WE among educational professionals globally, while utilizing Islamic Positive Psychology (IPP) as a complementary analytical lens. Methods: Guided by PRISMA 2020 guidelines, a systematic search was conducted across six international databases: Scopus, ScienceDirect, PubMed, JSTOR, Semantic Scholar, and IIUM. A total of 29 quantitative articles met the inclusion criteria and underwent quality assessment and descriptive synthesis. Results: Across diverse educational tiers, geographical regions, and analytical models, the reviewed studies consistently reported positive associations between PsyCap and WE. Within the varied empirical frameworks, PsyCap was conceptualized as a direct correlate, mediator, co-factor, or moderator. Furthermore, WE frequently functioned as an explanatory mechanism connecting PsyCap to well-being and reduced burnout. Conceptually, these HERO dimensions align with Islamic psychological values including sabr (resilience), raja' (hope), husn al-dhann (optimism), and itqan (excellence). Conclusion: PsyCap represents a vital psychological resource linked to educator engagement; however, as all included studies employed cross-sectional designs, these observed relationships reflect associative patterns rather than established causal effects. Future longitudinal research is needed to confirm directional trajectories across diverse cultural contexts.