The emergence of live-streaming commerce has significantly altered the purchasing patterns of consumers, and it has become a critical component of e-commerce and marketing, specifically during the pandemic. This study investigates how customer engagement and trust are impacted by perceived utility, platform interaction, and source credibility, as well as how these factors affect purchase intention and actual purchasing behavior. Data were gathered from 247 regular live streaming platform users in Chennai, Tamil Nadu, India, employing purposive sampling and a standard questionnaire. From August to November 2024, the survey was administered during periods of significant online purchasing events and increasing live commerce activities. Participants were selected among technology-savvy, digitally engaged shoppers at major metropolitan shopping malls to generate a representative sample. Using Partial Least Squares Structural Equation Modeling, results indicate that source credibility, platform interactivity, and perceived usefulness significantly affect consumer engagement (β = 1.376, p < 0.001). The results indicate that source credibility, platform interactivity, and perceived utility strongly affect trust (β = 1.198, p < 0.001, β = 0.351, p < 0.001, β = 0.224, p = 0.010). The findings also showed that customer engagement has a favorable impact on both purchase intention and the actual purchase (β = 1.272, 0.404; p = 0.001, 0.003). Trust positively affects both purchase intention (β = 0.994, p = 0.002) and actual purchase (β = 0.546, p = 0.001). Marketers and e-commerce platforms could apply these results to create more authentic and dynamic live streaming experiences that boost consumer engagement and trust.