Across 3 studies, we apply a self‐protection perspective of observed mistreatment to examine a moderated mediation model on “when” and “why” third parties are motivated by peer abusive supervision. We hypothesize that prevention‐focused third parties will increase their performance effort as a response to peer abusive supervision, and this effect is mediated by performance instrumentality. In a field study of working adults (Study 1) and an experimental study that manipulated peer abusive supervision (Study 2), we found that peer abusive supervision interacted with third parties' prevention focus to predict their performance effort such that peer abuse was positively related to third parties' performance effort only for those high on prevention focus. Results were replicated in a second field study of working adults (Study 3). Further, we found support for the mediating effect of performance instrumentality. The theoretical and practical implications of our results are discussed.