The aim of the present study was to investigate the effect of ethical leadership on the service recovery performance of Mazandaran Provincial Tax Office employees with regard to the mediating role of job flourishing and the moderating role of ethical self-efficacy. This study is a descriptive survey in terms of its applied purpose and data collection method. The statistical population of the study included 150 employees of Mazandaran Provincial Tax Office. Due to the limited number and complete access, the sampling method was selected as a total count; therefore, the entire statistical population was examined as a sample. The data collection tools included the Brown and Trevino (2006) Ethical Leadership Scale, the Porat et al. (2012) Work Flourishing Scale, the Owens et al. (2019) Ethical Self-Efficacy Scale, and the Babakos et al. (2003) Service Recovery Performance Scale, whose reliability was confirmed with a Cronbach's alpha coefficient higher than 0.7. The data were analyzed using SPSS version 25 software at the descriptive level and SmartPLS. Version 3 was analyzed at the inferential level and to test the relationships between variables using structural equation modeling. The results of the study showed that ethical leadership has a positive and significant effect on service recovery performance and employee job fulfillment, and job fulfillment significantly affects service recovery performance. In addition, job fulfillment plays a mediating role in the relationship between ethical leadership and service recovery performance, and moral self-efficacy plays a moderating role in the relationship between ethical leadership and employee job fulfillment. The findings indicate that strengthening ethical leadership in the organization can pave the way for increased job fulfillment, improved moral self-efficacy, and improved service recovery performance. Accordingly, managers' attention to developing ethical leadership styles and improving employees' psychological capacities, especially moral fulfillment and self-efficacy, seems essential to increase effectiveness and customer satisfaction in the organization.