Psychological climate is a type of climate that is measured at individual level and pertains to employees’ cognitive appraisal of work environment. Though various attempts have been made to define and conceptualize it, and several models have been proposed to measure this construct, the ambiguity surrounding its conceptualization and measurement still persists. This study aims to synthesize and analyze research on psychological climate, elucidate ambiguities, and contribute to conceptualization and demarcation of the construct.