In recent years, increasing attention has been devoted to the multidimensional development of students, particularly the interplay between physical and psycho-educational domains. Physical literacy, defined as the knowledge, skills, and confidence necessary for meaningful participation in physical activities, may play a significant role in various aspects of students’ academic lives. The present study aimed to examine the relationship between physical literacy and academic engagement among elementary school students. This research employed a descriptive-correlational design. The statistical population consisted of 120 male students aged 10 to 12 years from Noorabad city. Data were collected using the Utrecht Work Engagement Scale–Student Version (Schaufeli et al., 2002) and the Canadian Assessment of Physical Literacy, Second Edition (CAPL-2). Data analysis was conducted using Pearson’s correlation coefficient and multiple regression analysis. The results revealed a significant positive relationship between physical literacy and the dimensions of academic engagement, including absorption (p < 0.001), vigor (p < 0.001), and dedication (p < 0.001). Specifically, students with higher levels of physical literacy demonstrated higher levels of academic engagement. Furthermore, the components of daily physical activity (p < 0.001) and physical competence (p < 0.001) emerged as the strongest predictors of academic engagement. Based on these findings, physical literacy can be considered an important factor influencing academic engagement among elementary school students. Therefore, implementing curricular and extracurricular programs aimed at enhancing physical literacy in schools may substantially contribute to improving students’ academic motivation and engagement.