Previous research has indicated that abusive supervision negatively influences various organizational outcomes. However, the antecedents and psychological mechanisms of abusive supervision are not well understood, especially in the Chinese context. In this study, we propose and test a mediated moderation model to explore the interactive effect of psychological contract breach and negative reciprocity belief on abusive supervision, and the mediating effect of organizational identification. Using a sample of 268 dyads of employees and their immediate supervisors (N = 536) from six companies and two industries in China, we find that when supervisors experience breaches in psychological contract they are likely to increase abusive behaviours toward subordinates, and that the positive association is stronger the more the supervisor holds negative reciprocity beliefs. Moreover, the results indicate that organizational identification mediates the joint effect of psychological contract breach and negative reciprocity belief on abusive supervision. Theoretical and practical implications, limitations, and future research directions are discussed.