In this study, we investigate the relationship between ethical leadership (EL), work engagement (WE), well-being, and innovative work behavior (IWB). The significance of these variables has increased in the current era when the influence of technology is exponentially increasing in the education sector. We investigate the role of ethical leadership in determining innovative work behavior. Moreover, we investigate the moderating effect of WB in the relationship between EL and WE. We also examine the mediating impact of WE in the relationship between EL and IWB. We used a questionnaire survey approach to collect data. The target population of this study was the academic personnel, i.e., senior professors, lecturers, and supporting staff associated with the higher education sector located in Zhejiang Province, China. Data were collected in two phases. In the first phase, we sent 300 research questionnaires and received 251 responses. In the second phase, after a three-month interval, we sent 200 questionnaires and received 162 responses. However, over the two phases, we collected a total of 413 questionnaires; 43 were discarded. Therefore, for analysis, we used 370 questionnaires. The data were analyzed using the structural equation modeling through SmartPLS 3.2.2. First, in the direct relationship, results confirm that EL positively influences the IWB. Secondly, WB has a positive and moderating relationship between EL and IWB. Thirdly, we address the relationship between EL and WE. The outcome indicates that there is a positive and significant relationship. Fourth, the results of this study indicate that there is positive and significant relationship between WE and IWB. Finally, the outcomes imply that WE positively mediates between EL and IWB. Ethical leadership and well-being are important for innovative work behavior that supports managers in introducing a supportive workplace environment that promotes good interpersonal relationships with subordinates. Therefore, a good interpersonal relationship between managers and subordinates enhances the work quality. So, ethical leaders provide a supportive work environment to all subordinates regarding their work.