Drawing on the theoretical framework of social cognitive theory, our study explores the multilevel mediation model in which moral disengagement (level‐1) mediates the direct relationships between knowledge hiding by supervisors from subordinates (KHSS: level‐2) and supervisor directed organizational citizenship behavior (SOCB: level‐1) and supervisor directed silence (SS: level‐1). Drawing on multi‐sourced, multi‐timed, and multilevel data of 306 subordinates nested within 83 supervisors, multilevel structural equation modeling (ML‐SEM) was used to test the proposed model. The results demonstrate that KHSS, first, fosters subordinates’ moral disengagement, which in turn reduces their SOCB and enhances their SS. Our findings offer several useful theoretical and managerial implications of the negative consequences of supervisor knowledge hiding in organizations. As one of the first studies to provide empirical evidence for the existence of supervisor knowledge hiding (i.e. KHSS), this research highlights the consequences of KHSS on subordinates’ moral disengagement, SOCB, and SS.