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This paper aims to explore the effect of ethical leadership on employee job satisfaction and organizational commitment through the potential mediator of psychological capital (PsyCap). In total, 418 employees in Ho Chi Minh City—Vietnam completed the survey. Partial least square–structural equation modeling was used to test hypotheses. The results of the study indicated a positive relationship between ethical leadership and employees’ PsyCap, job satisfaction, and organizational commitment. Furthermore, the results revealed the partial mediating effect of PsyCap on the relationship between ethical leadership and job satisfaction and between ethical leadership and organizational commitment. Since the mechanism of ethical leadership has rarely been explored, the results of this study could provide important references for further research. These results could also be greatly beneficial to organizational leaders in evaluating ethical leadership.