Empathy refers to perceiving the emotional state of others, an essential soft skill yet missing among today’s generation. The present study investigates the significance of empathy among management students by evaluating the variables affecting empathy levels, exploring the factors influencing empathy scores and using the Toronto Empathy Questionnaire (TEQ) for selected universities in Gujarat. A structured questionnaire was administered to 482 university students between November 2024 and January 2025, collecting primary data. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were applied to assess construct validity, internal consistency, and test-retest reliability using the AMOS tool to ensure the robustness of the TEQ. The findings indicate that Leader Emotional Engagement (LEE) has a strong positive impact on Employee Dedication (ED). Emotional Awareness (EA) shows a moderate influence on Emotional Resilience (ER), while Employee Dedication (ED) exhibits a moderate-to-strong effect on ER. These results highlight the interconnected roles of leadership, emotional awareness and dedication in shaping workplace emotional resilience.