Despite the critical role that daily work goal progress plays in organizational profitability, very little is known about how it affects employees. Drawing on self-regulation theory, the present research examines both the beneficial and detrimental effects of daily work goal progress on employee work engagement. Results from a study using the experience sampling method indicated that work goal progress in the morning promoted work engagement in the afternoon by enhancing employee construal level, while it inhibited work engagement in the afternoon by causing employee psychological licensing. Employee conscientiousness attenuated the inhibitory effect of work goal progress on work engagement via psychological licensing. Theoretical and practical implications of the findings are discussed.