The present study aims to investigate the relationship between highperformance work system (HPWS) and competitive advantage (CA) through a mediating role of collective human capital (CHC) in the banking organizations of Pakistan. The sample of the study consists of 76 branch managers of both public and private sectors banks operated in Rawalpindi and Islamabad. The finding shows that collective human capital fully mediate the link between highperformance work system and competitive advantage. The study also found that private sector banks managers highly practice HR practices in their respective branches as compared to their public sector banks managers. Also, female managers practice more HR practices as compared to their male counterpart, and managers of higher experience practice more HR practices in their respective organizations. Implications of the results, limitations and future directions have also been discussed.