The Retail Industry is known to be a labor-intensive industry due to the high pressure felt from the customers’ various demands that needed to be satisfied immediately, thus, leads to a low job satisfaction level for this industry. Hence, the aims of this research are to identify whether or not the participative leadership has a positive relationship with and positively affects employees’ job satisfaction and work engagement, and to examine whether the fun experienced at workplace influences employees’ job satisfaction and work engagement. A research regarding the participative leadership’s relationship with work engagement and fun in the workplace on employees’ job satisfaction in the retail industry is therefore conducted. The data was collected from 140 retail workers from Bogor, Bekasi, and Depok through online questionnaires and was analyzed using SPSS v. 23. The findings present that participative leadership style positively correlate with employees’ job satisfaction, and their work engagement mediates that relationship. However, one of the participative leadership style perks, supporting fun experienced at workplace, is found to not be increasing employees’ job satisfaction level since it is perceived differently among employees. These findings cannot be generalized to all retail store across Indonesia because of the respondents’ distinctive characteristics. This research is conducted with a hope of providing a further understanding of why a participative leadership style is able to increase employees’ job satisfaction and work engagement as well.