Purpose: Through the lens of social exchange and self-determination theories, this paper proposes and tests a model to explore how inclusive leadership practices foster employee job satisfaction at higher education institutions. It also explores the intervening roles of psychological ownership and employee thriving in this relationship. Design/methodology/approach: This study followed a positivist worldview and a quantitative methodology. The authors collected data from a sample of 329 academic and nonacademic staff working at Omani higher education institutions. The authors utilized partial least squares-structural equation modelling (PLS-SEM) to examine the model and test the hypothesized relationships. Findings: This study's findings reveal that inclusive leadership is related to job satisfaction. They also show that psychological ownership and employee thriving mediate between inclusive leadership and job satisfaction at Omani academic institutions. Practical implications: Since employees at Omani academic institutions come from different cultures, academic leaders should manage and promote inclusiveness by developing and enforcing relevant policies. They should carefully select the workforce that stimulates growth and effectiveness, create an atmosphere to foster acceptance and exchange of ideas, improve performance appraisal practices, and embed inclusiveness in their vision and mission. Originality/value: This research helps researchers and practitioners better understand how inclusiveness fosters vitality and learning in the higher education sector. It also sheds more light on how psychological ownership and employee thriving mediate between inclusive leadership and job satisfaction. This research is also important due to its context, as it was implemented in a multicultural environment with a diverse workforce.