Building on the frameworks of conservation of resources and spillover theories, we examine the role played by community diversity climate in influencing employee intent to stay with the current employer. While examining these relationships our study also clarifies the role of organizational psychological safety as an underlying psychological mechanism and organizational diversity climate as a boundary condition. The results of our study support our hypotheses. Organizational psychological safety acts as a mediator in the relationship between community diversity climate and employee intent to stay, while organizational diversity climate moderates the relationship between community embeddedness and psychological safety. The study also discusses theoretical contributions and practical implications, along with suggestions for future research.