Purpose: In the era of hyper-competitiveness, firms, especially project-based management structures, have to focus on ideas for both new and existing sets of products and services, i.e. ambidextrous innovation. The ambidextrous innovation can be helpful, but achieving such a level is a problem to be solved. This study aims to yield ambidextrous innovation by using innovative culture and knowledge that has been gained from learning. Design/methodology/approach: The present research collected data from Saudi Arabian public-sector firms. The data collected is analyzed using the partial least squares structural equation modeling (PLS-SEM). Findings: The findings of the study suggest that a range of factors can be operationalized in project-based firms to establish organizational learning and innovation culture. These factors include agile-based project management, leveraging existing innovative capabilities and growth mindset in case of innovative organizational culture and additional factors of agile-based knowledge management along with others in case of organizational learning. The PLS-SEM further concluded that both organizational learning and innovative organizational culture, in turn, help project-based Saudi Arabian public-sector firms to develop their ambidextrous innovation capability. Originality/value: The PLS-SEM further concluded that both the organizational learning and innovative organizational culture, in turn, help project-based Saudi Arabian public-sector firms to develop their ambidextrous innovation capability.