This study examines how ethnic diversity affects employee retention, with workplace belongingness as a mediator, among employees in the information technology (IT) industry in Coimbatore, Tamil Nadu. Guided by Social Identity Theory, the study explores the relationships between ethnic diversity, workplace belongingness, and employee retention. A quantitative research approach is proposed, with a sample of 241 employees and a structured questionnaire using a five-point Likert scale. The analysis suggests that ethnic diversity is positively associated with workplace belongingness and that workplace belongingness positively influences employee retention. The results also illustrate a potential indirect relationship between ethnic diversity and employee retention through workplace belongingness. These findings highlight the importance of inclusive organizational practices, equitable treatment, and a supportive work environment in strengthening employees’ sense of belonging.