ABSTRACT Leader affiliative humour is when the leader makes funny remarks to reduce tension or amuse followers. Previous authors find leader affiliative humour may produce favourable effects. Yet, research demonstrates that it can also cause undesirable results. This study draws on the cultural perspective to propose follower power distance orientation as a moderator in leader affiliative humour’s favourable and unfavourable influences on work outcomes in multicultural teams, which refers to work teams composed of members from different countries and cultural backgrounds. To collect data from members of multicultural work teams, we conducted an individual-level three-wave survey with a two-month time lag each in a large Taiwan-based financial holding company operating in more than 20 countries. Analyses of matched data collected from 192 worker-supervisor pairs find leader affiliative humour can improve task performance via increased leader-member exchange only when the follower’s power distance is low and can initiate organizational deviant behaviours via perceived acceptability of norm violation only when the follower’s power distance is high. Our study provides empirical evidence from multicultural teams to demonstrate how leader affiliative humour may favourable or unfavourable influence workers with different levels of power distance orientation to complement the leader humour and the multicultural team literature.