Drawing on self‐determination and self‐concept‐based theories, this study investigated the mediating effects of psychological empowerment and organization‐based self‐esteem on the relationship between supervisory mentoring and employee performance and the moderating effect of supervisor political skill on the direct and first stage of the indirect effects. Data were obtained from a sample of 330 subordinate–supervisor dyads from the People's Republic of China. Using PROCESS of conditional indirect effect, we found support for the moderated direct and indirect effects of supervisory mentoring. First, supervisor political skill moderates the direct effect of supervisory mentoring on employee promotability. Second, supervisor political skill moderates the indirect effect of supervisory mentoring on the following: (i) employee promotability via both psychological empowerment and organization‐based self‐esteem and (ii) contextual performance only via psychological empowerment. These direct and indirect effects of supervisory mentoring are stronger when supervisors demonstrate a higher level of political skill. Copyright © 2013 John Wiley & Sons, Ltd.