Shifting the focus from leader unethical pro-organizational behavior to leader pro-group unethical behavior, we examine how employees respond to such acts. Drawing on affective events theory and attribution theory, we develop a dual-pathway model to explain the paradoxical effects of leader pro-group unethical behavior on employees. Through a scenario-based experiment and a three-wave field study, we find that employees' reactions depend on how they interpret the leader's motivations.