We incorporate psychological ownership theory and adversity literature to examine the joint effect of psychological ownership and adversity on entrepreneurs' persistence decision. The results of two experiments and one survey show that both low adversity and high psychological ownership for the venture increase entrepreneurs' likelihood of persistence. We also identify the moderating effect of adversity. Psychological ownership is more relevant to the likelihood of persistence when adversity is high than when it is low. Our research contributes to psychological ownership theory and the entrepreneurial persistence literature and has practical implications for entrepreneurs.