The IT sector in Pune City, India, has experienced substantial growth over the years, fuelled by a thriving ecosystem of technology companies, startups, and skilled professionals. As innovation becomes increasingly central to the industry's operations, it is imperative to understand its impact on employee motivation within this context. The current study focusses on the impact of innovation on the motivation of the employees and viceversa. It also studies the overall perception of the employees on innovative practices used by their organization. The study is based on a sample of 177 IT employees from Pune City. The results of the study indicate that the employees' perceptions towards innovative practices in the organization significantly differ from the neutral point, indicating a positive perception overall. It also finds that as the level of motivation increases, the level of innovation also tends to increase, and vice versa. In other words, individuals who are more motivated are likely to exhibit higher levels of innovation, while those with lower motivation may demonstrate lower levels of innovation.