Studies to date have demonstrated the multifaceted benefits of expressing gratitude for both the individuals who express it and those who receive it, but few studies have explored the witnessing effect of leader gratitude expressions. By combining social learning theory and social comparison theory, we advance the literature by explaining why observed leader gratitude expressions evoke both positive and negative reactions from observers and how observers’ zero-sum mindset moderates these effects. Results from a multivalve field study (Study 1) and an experiment (Study 2) demonstrate that observed leader gratitude expressions stimulate the observing employees to learn from the coworker who receives the gratitude from leaders, thereby becoming more engaged in their work. Meanwhile, observed leader gratitude expressions can also be perceived as a status threat by observers, potentially leading to emotional exhaustion. Another experimental study (Study 3) replicates the findings of Studies 1 and 2 and tests the moderating role of observers’ zero-sum mindset. The positive relationship linking observed leader gratitude expressions to status threat was observed to be stronger for observers with a high zero-sum mindset. This study contributes to theory and practice by demonstrating that observed leader gratitude expressions can create both benefits and burdens for observers.