This chapter investigates the evolving role of corporate governance in enhancing organizational agility, an increasingly vital capability for firms operating in dynamic and uncertain environments. Anchored in Agency Theory (Jensen and Meckling in J Financ Econ 3:305–360, 1976 [25]), Evolutionary Economics (Alchian in J Polit Econ 58:211–221, 1950 [3]), and the concept of Specific Knowledge (Jensen and Meckling in Contr Econ 1:251–274, 1992 [26]), the study explores how governance mechanisms such as board structure, shareholder activism, and decentralized decision-making influence a firm’s capacity to adapt and respond to change. Traditionally, governance has been viewed through the lens of agency cost mitigation, however, this chapter shifts the focus toward agility as a strategic outcome of governance design. Additionally, the study identifies that agile governance practices, such as dynamic resource allocation and adaptive board oversight, foster innovation and rapid responses to market shifts. Through an integrative literature review, the chapter synthesizes insights from recent research, including Saragih et al. (Cogent Bus Manag 12:2438864, 2025 [37]), Lehn (J Corp Finan 66, 2021 [31]), and Coulson-Thomas (Eff Exec 24:7–29, 2021 [11]), which collectively underscore that agile governance practices like dynamic oversight, diverse board composition, and empowered leadership are not merely tools for mitigating agency costs, but also strategic enablers of innovation and resilience. The chapter highlights how governance structures that leverage firm-specific knowledge and promote strategic foresight enhance the firm’s responsiveness to technological disruption and market uncertainty.