There has been substantial research on megaprojects in project management literature. However, there is dearth of studies empirically investigating performance of new launched megaproject of Thailand that named as “Phuket sandbox”. The core purpose of this project is to normalize covid-19 situation and resuming tourism in Thailand. Therefore, the evaluation of project performance is essential to achieve the targeted goal for success. The purpose of this study is to investigate the factors that affect project performance (Phuket sandbox) in Thailand. This study used quantitative approach based on structured questionnaire and the data was collected from Phuket, Thailand. The survey conducted from team members which are tourism stake holders’ team, immigration team and public service teams including hospitals and hotels who were supposed for the management of Phuket tourism sandbox operations. The study got 222 valid responses only as the members were so busy and partial lockdowns in Thailand hindered the data collection process. The proposed hypothetical model tested by partial least square structural equation modelling. The results of the study found mix findings. The independent variables are team knowledge management, interpersonal conflict, organizational trust, and as significant and dependent variable as project performance through the mediation of psychological capital. The all relationships found to be significant except problem solving competence which have insignificant relationship with project performance as well as problem solving competence and organizational trust have insignificant relation with psychological capital.