As the older generation retires, the workforce is being replaced with a new generation of employees who have different skills, attitudes, and work expectations. Compared to previous generations, millennials – the younger cohorts, is a breed of very different characteristics, creating challenges to engage and retain them to harness their full potential for the benefit of the organization. Rewards are seen as one element that can promote employee engagement. Hence, the aim of this research is to identify the most effective predominant reward types for millennial employees in the apparel industry of Sri Lanka during an economic crisis that promotes higher employee engagement to facilitate longer tenure. A quantitative approach-based study was conducted with a randomly selected sample of 280 millennial employees in XYZ company using Krejci Morgan table. Self-administered online and physical questionnaire in a form of closed ended Five Point Likert-Scale used to implore responses and had respond rate was 72% (202 responses). Statistical analysis of data included descriptive statistics techniques, Pearson correlation, simple regression analysis and multiple regression analysis using SPSS ver. 20. Findings revealed that there is a significant impact of rewards (51%) on employee engagement of millennials. Further revealed a strong positive relationship between rewards and employee engagement (r =0.706 p < 0.01) while outcomes indicated that intrinsic rewards are more significant than of extrinsic rewards on employee engagement of millennials. Based on analysis, recommendation for the organization is provided and suggestions for future research are presented.