This study examines the relationship between Ethical Leadership and Employee well-being with job satisfaction as a mediating variable. The sample of this study was 126 nurses in PKU Muhammadiyah Hospital Bantul. This research method uses SEM and mediation methods by Baron-Kenny, which is then assisted using IBM SPSS AMOS analysis tools. The results showed that ethical leadership was positively related to employee well-being mediated by job satisfaction. With a high level of ethical leadership in nurses PKU Muhammadiyah Bantul Hospital affects employee well-being. However, a high level of ethical leadership in nurses will have more influence on the indirect effect of employee well-being through job satisfaction than the direct effect of employee well-being..