Perceived overqualification (POQ), defined as employees’ perception that their education, skills, and experience exceed job requirements, has become increasingly prevalent in contemporary labour markets. While prior research has largely examined either the antecedents or the consequences of POQ in isolation, a comprehensive theoretical integration remains limited. The present conceptual paper aims to develop an integrated framework that explains how individual, job-related, and organizational factors lead to perceived overqualification and how POQ subsequently influences employee attitudes, well-being, and behavioural outcomes. Drawing upon multiple theoretical perspectives, including Person–Job Fit Theory, Relative Deprivation Theory, Equity Theory, Self-Determination Theory, the Job Demands–Resources model, and Conservation of Resources theory, this paper proposes key mechanisms through which POQ affects job satisfaction, performance, counterproductive behaviours, turnover intention, and career outcomes. By synthesizing fragmented findings into a unified framework, this paper contributes to a deeper Concepual understanding of perceived overqualification and offers practical implications for organizations seeking to manage overqualified employees more effectively and sustain positive work outcomes.