Tourism governance faces a paradox, where mass growth continues to occur through overtourism, and ultimately threatens the physical capacity of destinations, and slowly erodes the rights of indigenous communities to live space. This paper aims to explain how overtourism impacts the basic psychological needs of indigenous communities, and also examines cultural resilience, as a mediator between the fulfilment of these psychological needs and the sustainability of indigenous tourism (Sustainable Indigenous Tourism). The approach used is an explanation with a cross-sectoral survey of 321 respondents from indigenous communities in Bali, who were selected using random sampling techniques and based on convenience, and then the collected data were analysed using Structural Equation Modeling (SEM). The results of structural model testing indicate that overtourism has a significant negative effect on Self-Determination and Cultural Resilience. Conversely, Self-Determination exerts a strong positive influence on Cultural Resilience. Cultural Resilience is proven to partially mediate the effect of basic psychological needs on Sustainable Indigenous Tourism. The destructive impact of overtourism operates systemically by undermining community autonomy and cultural resilience at the micro level. Genuine indigenous tourism sustainability can only be achieved through the strengthening of individuals’ psychological foundations, guaranteed by the recognition of the structural authority of local communities....