Purpose This research seeks to examine the mitigating effect of religiosity on the relationship between abusive supervision and unethical behavior in employees, with moral disengagement serving as a mediating factor. Drawing on social cognitive theory, the study proposes an overarching moderated mediation framework to analyze this complex dynamic. Design/methodology/approach The testing of the model was based on hierarchical data obtained from 70 work units in services sector. Within this framework, 70 supervisors evaluated the unethical conduct of employees, while 700 employees assessed the abusive supervision they experienced and reported on their own moral disengagement and religiosity. For the analysis of both the measurement and the hypothesized models, multilevel modeling techniques in the Mplus software were utilized. Findings The study's findings indicate a direct positive link between abusive supervision and employees' unethical behavior, with moral disengagement mediating this relationship. Furthermore, the research discovered that abusive supervision leads to unethical behavior in employees through moral disengagement only in instances where their religiosity is low. Originality/value This research delves deeper by elucidating the role of moral disengagement in the dynamic between abusive supervision and unethical behavior. Diverging from prior research, this study uniquely highlights the moderating role of religiosity, showing its potential to weaken the impact of abusive supervision on unethical behavior in employees through moral disengagement.