Studies show that personality factors influence academic performance. However, the underlying reasons governing this relationship are not fully explored. Based on the Broaden and Build theory and the Cognitive Mediation theory this study posits that psychological capital (PsyCap) mediates the relationship between personality and academic performance. It is grounded on the premise that positive psychological capital, a higher order core-construct comprising four positive psychological constructs of self- efficacy, hope, optimism, and resilience is an important outcome of personality traits and a strong predictor of academic performance. Data were collected from 305 students of a business management program in central India using standard measures of personality and PsyCap and actual cumulative grade point average (CGPA) for academic performance. Data analysis was conducted using SEM-PLS. Results showed that psychological capital fully mediated the relationship between personality dimensions (extroversion, agreeableness, openness to experience) and academic performance. Limitations, future research, and practical implications are discussed.