This study examined the mediating role of leader–member exchange and psychological empowerment in the relationship between ethical leadership and employee creativity. Survey data were collected from 172 doctors who were working in a large public sector hospital located in Pakistan. Results showed that as hypothesized, leader–member exchange and psychological empowerment fully mediated the effects of ethical leadership on employee creativity. Additionally, it was found that leader–member exchange influenced creativity directly as well as indirectly through the mediating mechanism of psychological empowerment. The theoretical and practical implications of this research are discussed.
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