Coaching leadership greatly impacts athletes’ mental health and wellbeing. Although research shows a positive link between authentic leadership and athlete satisfaction, studies on specific subdimensions are limited. This study examines the influence of authentic leadership on athlete engagement and performance, utilizing a conditional process model to explore the mediating effects of psychological ownership and athlete engagement. A survey of 381 athletes (274 male, 107 female; Mage = 19.98; SD = 2.48) from team and individual sports found that perceived authentic leadership positively correlates with training competition satisfaction, psychological ownership, and athlete engagement. Structural equation modeling revealed that psychological ownership and athlete engagement significantly mediate this relationship. Thus, authentic leadership directly and indirectly enhances athletes’ satisfaction.