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This study examines the impact of a supportive work environment on employee retention among healthcare professionals in Kerala, with organizational engagement serving as a mediating variable. Grounded in Social Exchange Theory and the Resource-Based View, the study investigates how workplace factors such as perceived climate, supervisory relationships, peer interaction, and perceived organizational support influence employees’ intention to remain with their organizations. A quantitative cross-sectional research design was adopted, and data were collected from healthcare professionals working in public and private hospitals across Kerala. Structural Equation Modeling (SEM) and regression analyses were employed to test the proposed relationships. The findings reveal that a supportive work environment has a significant positive effect on both organizational engagement and employee retention. Organizational engagement was also found to positively influence employee retention. Furthermore, the results indicate that organizational engagement partially mediates the relationship between a supportive work environment and employee retention. The study highlights the importance of fostering supportive workplace practices and enhancing employee engagement as strategic approaches to reducing turnover and strengthening workforce stability in the healthcare sector. The findings provide valuable implications for healthcare administrators and human resource managers seeking to retain skilled professionals in Kerala's healthcare system.