This study examines the role of psychological ownership as a moderator in the relationship between workplace alienation and employee mental health. Workplace alienation, marked by feelings of disconnection, powerlessness, and detachment from organizational goals, can lead to negative mental health outcomes such as anxiety, burnout, and depression. Psychological ownership, defined as the sense of emotional investment and ownership over one's work, is proposed to weaken this negative relationship. A sample of 500 employees from the IT sector was utilized, employing a correlational research design. Correlation analysis, hierarchical regression analysis, and moderated regression analysis were conducted to explore these relationships. The results indicate that psychological ownership significantly moderates the impact of workplace alienation on mental health. Employees who feel a strong sense of ownership over their work experience reduced negative mental health effects, even in environments where workplace alienation is present. The findings suggest that organizations should focus on fostering psychological ownership to buffer the adverse effects of alienation and promote better mental well-being. The implication of the study emphasizes the need for organizations to create environments that empower employees and promote ownership to mitigate the harmful impact of workplace alienation on mental health. This study also advocates that employee mental health initiatives can move beyond stress-management workshops and instead focus on structural empowerment to enhance psychological ownership. The study also aligns with the SDGs by showing how reducing workplace alienation and fostering psychological ownership can enhance employee mental health (supporting SDG 3: Good Health and Well-Being), create more engaging and dignified workplaces that drive productivity (supporting SDG 8: Decent Work and Economic Growth), and build fair, inclusive, and resilient organizational cultures (supporting SDG 16: Peace, Justice, and Strong Institutions).