Taiwan's nursing leaders rarely receive formal training for leadership in academic research and practice. This study examined nursing faculty members' perceptions of nursing directors' leadership and nurses' self-psychological ownership levels to understand how perceptions of leadership styles related to psychological ownership in Taiwan. According to the social identity Theory, leadership group prototypicality have an important effect in employee's group identity, and work attitude. In this article, we explore the mechanism between authentic leadership and psychological ownership to understand how leadership group prototypicality works. The purpose of this study was to investigate the relationship between authentic leadership and psychological ownership. Furthermore, leader group prototypicality was considered as a mediating factor between authentic leadership and psychological ownership. This study specifically focused on the hospital industry, involving a study sample of paired nurses and nurse leaders from six hospitals in Southern Taiwan. A purposeful sampling method was adopted, and 343 nurses' data and 33 unit leaders' data were collected. This study used HLM methods to test the hypotheses. The crucial findings of this study revealed a significant association between authentic leadership and psychological ownership via leader group prototypicality. Mediation analysis revealed a significant association between authentic leadership and psychological ownership via mediators, leader group prototypicality. The tested model provides empirical evidence about the pattern of authentic leadership in health care workplace, thus confirming the presence of authentic leadership in organizations.