The social identity approach to stress proposes that the beneficial effects of social identification develop through individual and group processes, but few studies have addressed both levels simultaneously. Using a multilevel person–environment fit framework, we investigate the group-level relationship between team identification (TI) and exhaustion, the individual-level relationship for people within a group, and the cross-level moderation effect to test whether individual-level exhaustion depends on the level of (in)congruence in TI between individuals and their group as a whole. We test our hypotheses in a sample of 525 employees from 82 teams. Multilevel polynomial regression analysis revealed a negative linear relationship between individual-level identification and exhaustion. Surprisingly, the relation between group-level identification and exhaustion was curvilinear, indicating that group-level identification was more beneficial at low and high levels compared with medium levels. As predicted, the cross-level moderation of the individual-level relationship by group-level identification was also significant, showing that as individuals became more incongruent in a positive direction (i.e., they identified more strongly than the average team member), they reported less exhaustion, but only if the group-level identification was average or high. These results emphasize the benefits of analyzing TI in a multilevel framework, with both theoretical and practical implications.