Background <p>This study investigates the influence of the linguistic landscape on Chinese students’ foreign language enjoyment and learning outcomes, with language learning efficacy as a mediating factor, and explores the moderating role of language policy clarity.</p> Methods <p>Recognizing the significance of the linguistic environment in language education, we conducted a cross-sectional survey-based research study utilizing a structured questionnaire. Our sample consisted of Chinese students learning a foreign language. Structural Equation Modeling (SEM) was employed to analyze the collected data.</p> Results <p>The results confirm the hypothesized relationships within the proposed theoretical framework. The linguistic landscape significantly affects students’ language learning efficacy beliefs, subsequently impacting their foreign language enjoyment and learning outcomes. Moreover, our findings suggest that language policy clarity exerts a moderating influence on these relationships.</p> Conclusion <p>This research contributes to a deeper understanding of the interplay between the physical linguistic environment, psychological factors, and educational outcomes in foreign language learning contexts. Implications for educators, policymakers, and practitioners are discussed in light of these findings.</p>