The objective of the study is to explore how “intellectual capital,” which consists of three components—human capital, structural capital, and relational capital—contributes to attaining “competitive advantage,” characterized by its elements of “superior quality, superior efficiency, superior responsiveness, and superior innovation” within the pharmaceutical manufacturing industry. This research will be approached from the viewpoint of all employees working in pharmaceutical manufacturing firms, including managers, their assistants, department heads, and staff members. Employing a descriptive-analytical methodology, the study utilized a questionnaire as the primary instrument for assessing the study variables. Employees from Dar Al Dawa, Hayat Pharmaceutical Industries Co., and Philadelphia Pharmaceuticals, all of which are listed on the Stock Exchange, were the focus of the study. The total population consisted of 1168 employees, while the sample comprised 303 individuals. Data analysis and hypothesis testing were carried out using the Statistical Package for the Social Sciences (SPSS) software. The study concluded with several findings, the most significant being that the dimensions of intellectual capital play a role in achieving competitive advantage. Furthermore, the strongest influence on competitive advantage within companies is attributed to structural capital. The research also provided several recommendations, with the most crucial being the imperative for pharmaceutical firms to implement policies and strategies aimed at fostering intellectual capital and creating a specialized customer management department to improve communication, gather feedback, and comprehend evolving needs.