In an environment that places a priority on morality, authentic leadership is becoming increasingly important. Chinese enterprises are putting a lot of effort into improving their employees’ psychological safety and positive psychological capital (PsyCap). This study examines the influence of authentic leadership on positive PsyCap and psychological safety, as well as the influence of positive PsyCap on psychological safety in China. It also examines whether positive PsyCap plays a mediating role. Authentic leadership has a positive effect on both positive PsyCap and psychological safety. Positive PsyCap also has a positive effect on psychological safety. Moreover, positive PsyCap had a mediation effect on the relationship between authentic leadership and psychological safety. This result means that an authentic leadership style can stimulate employees’ psychological capital, make the staff more confident and promote optimistic attitudes, hopeful minds, and plenty of other positive psychological states. At the same time, it promotes the psychological safety of employees in Chinese art enterprises. The significance of this study is that it investigates the effects and processes of authentic leadership on psychological safety and positive PsyCap in Chinese art enterprises. The implications of this research bridge a theoretical gap in the field, and provide feasible suggestions and guidance for development in the discipline. Enterprises should attach importance to the selection, cultivation, and appointment of authentic leaders. They must also pay attention to trends in employee psychological safety and positive PsyCap.