This study aimed at analyzing the relationship between institutional trust, work engagement and performance of physical education teachers in the cities of Tehran Province. The research had a correlational design. The statistical population of the study was comprised of all physical education teachers in the cities of Tehran Province in 2019-20 school year (1497 individuals). Random sampling method was used and based on Morgan table 306 teachers were selected. The instruments included the Institutional trust Questionnaire (Ellonen et al., 2008), Shari’atmadati & Darandeh Performance Questionnaire (2011), and Salanova & Schaufeli Work Engagement Questionnaire (2001). Descriptive and inferential statistics were used to analyze the data. The Kolmogorov-Smirnov test was utilized to examine the normality of the data. Pearson correlation was also used and AMOS software was utilized for path analysis. The results demonstrated that there was a significant relationship between institutional trust, components of work engagement, and teachers’ performance. In addition, there was a significant relationship between institutional trust and work engagement components. The results of the path analysis indicated that the mediating role of work engagement had an impact on the relationship between institutional trust and teachers’ performance.  Based on the findings, it can be concluded that institutional trust improves the relationship between physical education teachers and managers and promotes teachers’ efficacy.