The current strategies of increasing work-life quality are being given special attention by both public and private organizations. These quality strategies have arisen because of the highly competitive environment. Also, a safe and healthy work environment that provides the opportunities for employees to enhance their loyalty, affiliation and love towards their work and organization is required in order to achieve the current and future aspirations of the organization. Accordingly, this study aims to explore the direct relationship between the variables: the strategy of work-life quality, strategic agility and sustainable competitive advantage, to identify their indirect relationships with their own dimensions. In order to achieve this, a questionnaire was distributed to both heads of companies and their deputies in large and medium Yemeni manufacturing companies, using a random sampling technique to reach 227 companies out of 554 by distributing 454 questionnaires for the selected population. Cronbach’s Alpha coefficient and exploratory statistics were carried out to identify the quality of measurements used to examine the proposed theoretical method using SEM. The results of the study are that there is a direct relationship between the variables. Additionally, there is an indirect relationship between the independent variable (strategy of work-life quality) and the dependent variable (sustainable competitive advantage) using strategic agility as a mediator in Yemeni large and medium manufacturing companies. These findings ensure the validity of the proposed theoretical model. In addition, it fills the knowledge gap regarding this issue and the findings highlight the competitive challenges that Yemeni companies must be aware of.