This study is intended to examine or explore the contribution of interpersonal relationship between project managers and project team members, interpersonal relationship among project team members and the influence of transformational leadership on the performance of international aid projects. Does interpersonal trust among project team members affect the performance of international aid project? Does mediating effect of team member engagement affect the outcome of international aid projects? An online survey method was applied to examine how transformation leadership, trust and the mediating role of team member engagement can influence aid project performance outcome.The data do not support the direct influence of transformational leadership to aid project performance. The mediating role of team member engagement is supported by the data and interpersonal trust have direct effect on aid project performance. The findings of this research avail to both local stakeholders and international donors a better understanding of other barriers added to cultural, political, and environmental influence on aid underperformance in developing countries. In addition, the results of this research reveal the importance of trust as a key factor that influences building an effective project team and the impact of teamwork to project performance.
Finally, this research provides findings that are vital within the field of international project management and factors that impede and as well positively influence aid project outcomes. This research fills the gap of interpersonal relationship and project manager’s leadership capabilities as a determinant to aid project performance in developing country, a dimension which remains unexplored.

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