This chapter explores the critical relationship between an organization's innovation culture and its impact on employee engagement and retention. An innovation culture fosters an environment that encourages creativity, autonomy, and continuous development, which significantly influences employees' motivation and satisfaction. By examining key metrics such as engagement surveys, retention rates, performance metrics, and innovation outcomes, the chapter highlights how these factors interrelate to enhance organizational performance. Best practices for cultivating a supportive innovation environment, empowering employees, investing in professional development, and maintaining work-life balance are discussed. Additionally, strategies for recognizing and rewarding innovation and fostering collaboration are examined. Understanding these dynamics provides organizations with actionable insights to improve engagement and retention, ultimately driving long-term success and growth.