Purpose: This study aims to test the cross-level effects of team job crafting on individual innovative work behaviour (IWB) and the mediating role of team psychological capital (PsyCap). Design/methodology/approach: This longitudinal study tested a multilevel design in a sample of 163 employees, clustered into 45 teams. Job crafting and PsyCap were aggregated to the team level to examine the effects of team job crafting Time 1 on individual IWB Time 2. In addition, mediation analysis was tested to determine whether team-level job crafting Time 1 can affect individual IWB Time 2 through team PsyCap Time 2. Findings: Results found that team job crafting was positively related to individual IWB, and the relationship was mediated by team PsyCap. Practical implications: This study includes implications for adopting job crafting behaviour at the team level to improve individual IWB. Originality/value: This cross-level study is the first to verify the effects of team job crafting on individual IWB and team PsyCap as a mediator. This study extends the literature on job crafting by using a multilevel design in the analysis.