This study addresses the impact of psychological capital on employee's burnout while investigating the mediating role of job insecurity. The survey of this study is conducted on 161 nurses, who work for the hospitals of foundation universities. Structural equation modeling was employed in order to test the research hypotheses. Bootstrapping method, which is based on 1000 bootstrap samples with a 95 % bias corrected confidence intervals, was also included in the study to test mediation effect. Results reveal that psychological capital affects burnout and job insecurity negatively. Further, job insecurity is a mediator for the relationship between psychological capital and burnout. (C) 2015 The Authors. Published by Elsevier Ltd.