Purpose The purpose of this paper is to examine the effect of team-member exchange (TMX) differentiation on team creativity by developing a moderated mediation model. The model focuses on the mediating role of team proactivity in linking TMX differentiation with team creativity and the moderating role of leader-member exchange (LMX) median in influencing the mediation. Design/methodology/approach A time-lagged field survey data from 331 employees and 68 team leaders in more than ten high-technology firms from Northern China was used to test the model. Findings Results indicated that the negative relationship between TMX differentiation and team creativity was mediated by team proactivity. Moderated mediation analyses further revealed that team proactivity mediated the relationship between TMX differentiation and team creativity for only those teams with a low-LMX median. Originality/value The empirical study provides preliminary evidence of the mediating role of team proactivity in the negative relationship between TMX differentiation and team creativity. The moderated mediation model also extends the existing finding by showing that LMX quality can moderate the indirect impact of TMX differentiation on team creativity (via team proactivity).