The first purpose of this study was to investigate whether workplace bullying and its dimensions of work-related bullying, person-related bullying, physical intimidation bullying, and cyber-bullying positively predicted three employee level outcomes of job insecurity, turnover intentions, and counterproductive work behaviour in targets of bullying. The second purpose of this study was to examine two positive psychology constructs, i.e. psychological capital along with its existing four dimensions of confidence, hope, resilience, optimism and additional four dimensions of wisdom, courage, gratitude, and forgiveness, and work engagement as possible moderators of relationships between workplace bullying and the three employee level outcomes. Employing snowball sampling through appointing a primary referral for each organisation, data were obtained from 162, (telecommunication sector) 102, (health sector) and 98 (higher education sector) employees. Linear regression was employed test direct effects and hierarchical regression was used to test moderation effects. Results revealed that full support was found for hypotheses pertaining to direct effects of workplace bullying on employee outcomes, while partial support was found for most hypotheses that had predicted direct effects of workplace bullying dimensions on employee outcomes. Full support was also found for hypotheses suggesting a moderating role of psychological capital on workplace bullying and employee outcomes relationships, while most hypotheses that had suggested a moderating role of psychological capital dimensions on workplace bullying and employee outcomes relationships found partial support. Most hypotheses that had predicted a moderating role of work engagement on workplace bullying and employee outcomes found partial support. Overall, of the 45 postulated hypotheses, 16 found full support, 24 found partial support, while five found no support. This study mainly found that adverse employee outcomes of job insecurity, turnover intentions, and counterproductive work behaviour are triggered in targets of bullying. Moreover, psychological capital and work engagement were proven as important moderators of workplace bullying and employee outcomes relationships.A notable theoretical implication of this study is broadening of the positive psychology literature: positive psychology variables of psychological capital and work engagement are suggested as significant employee strengths that may be employed as preventive measures to offset bullying effects in targets of bullying within bullying prone environments. Based on study findings, it is suggested that human resource managers, planners, and practitioners may design training and interventions focused on psychological capital and work engagement, and may integrate elements of psychological capital and work engagement in aspects such as job analysis, recruitment and selection, and work design. In addition, strengths, limitations, as well as theoretical, managerial, and organisational implications of the study are offered at the end of the study.