Multicultural university workspace comprises of professors and non-teaching staffs from different cultures, castes, and regional backgrounds. Diversity in culture, caste, religion, and gender is crucial for establishing a workplace that imbibes multiculturalism. Positive psychological capital (PsyCap) is important for optimal human functioning irrespective of inherent systemic biases. Four psychological constructs, namely hope, self-efficacy, resilience, and optimism, were found to best fit the inclusion requirements after drawing on positive psychology conceptions and past empirical research. The four constructs that constitute PsyCap were found to work together to generate a second-order core construct that had a greater association with performance and pleasure than any one of the four components taken alone. The research investigation found that positive PsyCap is crucial for a multiculturally diverse university workplace as they play an important role in developing the true potential of university professors, thus making their work more meaningful and productive.