Recently, strengths used at the team level, that is, collective strengths use, has been introduced as a novel construct that consists of the sub-dimensions of strengths awareness, credibility, and coordination, and influences individual as well as team performance. In this study, we developed a scale to measure this novel construct; moreover, we empirically tested the hypotheses that collective strengths use relates positively to team performance, and that individual performance mediates, while strengths diversity moderates, this relationship. We tested the resulting 2-1-2 moderated mediation model using a sample of 136 work teams encompassing 925 individual employees and their leaders. Cluster-corrected structural equation modeling supported the expected direct relationship between collective strengths use and individual performance and leader-rated team performance, but provided no support for the mediation and mixed support for the moderation hypotheses. Importantly, the analysis revealed differential relationships between the three sub-dimensions of collective strengths use and individual- and team-level performance.