This study investigates how organizational error tolerance (ET) influences employee creativity (EC) in the Indian IT service industry by proposing a moderated mediation model, drawing from the ‘Interactionist Perspective of Workplace Creativity’, to examine the interplay between employee mindfulness (EMF), creative process engagement (CPE), and error tolerance. The study utilized a survey method, gathering 320 data from IT employees and their supervisors in India. Analysis was conducted using SPSS 25.0 and Amos 25.0, employing hierarchical linear modeling and the PROCESS macro to test research hypotheses. The study found support for its hypotheses, indicating that the relationship between employee mindfulness and creativity is influenced by organizational error tolerance. Creative process engagement mediated this relationship, with error tolerance moderating the effect of employee mindfulness on CPE and subsequently on creativity.