This study investigates how ambidextrous leadership (AL) affects project management effectiveness (PME), emphasizing roles that psychological ownership (PO) and job engagement play as sequential mediators. Based on Self-Determination Theory (SDT), this study looks at how opening and closing leadership behaviors meet workers' psychological requirements for relatedness, competence and autonomy, which in turn promotes intrinsic motivation and a sense of ownership. Although AL has been studied in great detail in organizational contexts, less is known about how it indirectly affects PME through behavioral and psychological pathways, particularly in Pakistan's information technology (IT) industry. This study employs a cross-sectional research approach and collected data from IT professionals in Islamabad through structured surveys. Statistical methods such as sequential mediation, regression analysis and confirmatory factor analysis (CFA) were used to examine five hypotheses. Findings indicates that AL has a major direct and indirect impact on PME through PO and work engagement. This study contributes to existing literature by addressing critical gaps in AL–PME relationship and by extending application of SDT to project-based work environments. The findings underscore importance for IT project leaders to balance innovation with structure in order to enhance employee engagement and overall project performance. Practically study suggests that fostering psychological ownership and intrinsic motivation can serve as strategic levers for improving project outcomes. Keywords: ambidextrous leadership; psychological ownership; work engagement; project management effectiveness; opening leadership behavior; closing leadership behavior;