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The aim of this study is to assess educational engagement as a mediator of familial and school-based social care on psychological well-being of school students in India. Cross-sectional survey of students of Kashmir-Union Territory of Jammu and Kashmir, India was taken using validated self-report measures to assess educational engagement, social care within home and school contexts, teamwork dynamics, and psychological well-being. Standard descriptive statistics were utilized to determine mean values along with corresponding standard deviations. A structural equation model (SEM) was also employed to assess direct and indirect effects of determinants on psychological well-being considering that neither multi-group nor univariate conditions of normality had been met. A robust maximum likelihood estimator (RMLE) was, therefore, utilized accordingly. Students display moderate levels of engagement (M = 20.95, SD = 5.91), friendship support (M = 16.39, SD = 6.78), familial support (M = 15.82, SD = 4.64), and institutional support (M = 14.99, SD = 4.63). The inner team climate (M = 28.35, SD = 8.01) is also moderately supportive. Psychological well-being (M = 52.26, SD = 12.68). The structural model indicated good fit, indicating good explanatory power regarding psychological well-being (R² = 0.71) and engagement (R² = 0.61). Family support (p < 0.001), institutional support (p = 0.002), and inner team environment (p = 0.040) were identified to have a positive associative relationship with engagement. For psychological well-being, friendship support had a positive associative relationship with engagement (p = 0.002). Finally, within psychological well-being, engagement functioned as a mediator of the impacts of family support (Indirect effect = 0.18, p < 0.001) and of institutional support (Indirect effect = 0.12, p = 0.017). This research calls for better mental health care to improve students' engagement and resilience. Future researchers need to give priority to these issues.