The purpose of this study was to explore and understand the employee engagement and service orientation and the relationship between these 2 constructs. With the growing tourism industry, businesses strive to provide high quality levels of service to the customers but on the other hand there is a question if they are striving to provide service orientation to their employees. The studies that progressed in recent years showed the theory of relation between service orientation and engagement of employees. For the purpose of this study 3 dimensions of service orientation – leadership, service encounter and service systems were measured. A survey was conducted among employees of all levels within the hospitality and tourism organizations in Dubrovnik, Croatia. Survey results showed that relationship between employee engagement and service orientation do exist. This positive and meaningful relationship is of a crucial importance for businesses who are creating strong service orientation in order to engage their employees.