The aim of this study was to explore the relationship between project manager competence and project performance with the mediating role of team communication, employee trust, employee capability and team atmosphere. To achieve its objectives, this study used a quantitative research approach. Data was collected from 175 employees working on various projects in China. A structured questionnaire was used to collect the data from the respondents. All items were measured on a five-point Likert scale adapted from previous studies. Collected data was analyzed by using SPSS. The findings of the study showed that the performance of a project is significantly affected by the competencies of project managers. Moreover, the findings also showed that this relationship is significantly and positively mediated by team communication, employee trust, employee capability and team atmosphere. The findings show that the effectiveness of project manager competencies in enhancing project performance is influenced by these mediating factors which contribute to the success of the project. This research contributes to the theoretical understanding of project management by highlighting the multifaceted nature of project performance. It underscores the importance of holistic project management practices, where emphasis on both project manager competence and team dynamics is essential. Practically, the study offers insights for organizations and project managers, emphasizing the need for comprehensive skill development and fostering positive team environments. This study's originality lies in its comprehensive exploration of the mediating roles within the context of project manager competence and its implications in a globalized business environment.