The main purpose of this study is to investigate the relationship between psychological capital and employee performance through the mediating role of job embeddedness. Psychological climate is used as moderator to intensify the link between psychological capital and job embeddedness. Using data from 350 nurses belonging to four public hospitals, partial least squares structural equation modeling was utilized to analyze the hypothesized model. Job embeddedness significantly mediates the link between psychological capital and employee performance. Psychological climate heightens the relationship between psychological capital and job embeddedness. The findings offer suggestions for researchers on the conservation of resources and concept of psychological capital, public hospitals, and practitioners on how to improve the performance of employees.