This study seeks to explore the effect of the quality of supervisor–subordinate relationship (i.e., leader–member exchange; LMX) on employee creativity by examining a moderated‐mediation model. The model focuses on the mediating role of perceived insider status and the moderating role of perceived LMX differentiation in influencing the mediation. Using a time‐lagged research design, we collected data from 358 supervisor–subordinate dyads in a large Chinese diversified company. As predicated, we found that (a) perceived insider status mediated the positive relationship between LMX and employee creativity; and (b) perceived LMX differentiation moderated the strength of the mediated relationship between LMX and employee creativity via perceived insider status, such that the mediated relationship is stronger under high‐perceived LMX differentiation than under low‐perceived LMX differentiation.