Inclusion leadership can enable health care organisations to drive employee engagement, teamwork and the quality of care. This research examines how inclusive leadership and team collaboration operate across organizational levels to influence employee learning and performance. The study focuses on the mechanisms underlying these effects, particularly the mediating roles of psychological safety and work engagement. It also considers how inclusive leadership, team collaboration, and psychological safety function as boundary conditions within the model. The proposed framework is grounded in social exchange theory and social learning theory. Adopting a positivist philosophy and a deductive design, data were gathered from 1,300 employees and 150 team supervisors working in the Iraqi healthcare sector. Hierarchical linear modelling (HLM) was employed to analyse the data and test the study hypotheses. The findings indicate strong mediating effects among the multilevel variables and significant cross-level moderation involving inclusive leadership, team collaboration, and psychological safety. These factors show positive influences on outcomes at the individual level. Overall, the study contributes to the literature by offering a multilevel perspective that clarifies how perceptions of inclusion and collaboration shape both individual and team-related behaviours.