Background: Ethical work climate have a significant impact on nurse well-being by promoting ethical behaviour and values. Specifically, an ethical work climate can reduce the likelihood of moral distress occurrence. Moreover, ethical work climate can enhance nurses' compassion competences. As nurses work in an environment that supports ethical behaviour along with other values, they are more likely to feel supported and empowered to provide the required compassionate care to patients leading to improved patients outcomes for along with elevated job satisfaction for nurses. Objective: To Identify the relationship between ethical work climate and nurses' perception of moral distress and compassion competences.Settings: The study was conducted at Alexandria Main University Hospital, in all critical care units, as well as all intensive care units. Subjects: All nursing staff was working during the time of data collection in the previously mentioned units (N=191). Tools: Three tools were used for data collection. Tool (I) Revised Ethical Climate Questionnaire (RECQ), Tool (II) Moral Distress Scale-Revised (MDS-R), and Tool (ІII) Compassion Competence Scale (CCS). Results: The study showed that there was a significant negative correlation between EWC and MD, while significant positive correlation between EWC and CC. Conclusion: There was a significant relation between the ethical work climate with nurses' perception of moral distress and compassion competences which indicate the positive effect of the ethical work climate on moral distress and compassion competences. Recommendations: Develop workshops and discussion of ethical issues and policies to improve EWC and reduce MD, Should make compassion a priority within the health care system to grow a more compassionate environment, or in other word work place spirituality.