Envy may be an emotion shaped by evolution to resolve large resource disparities in zero-sum ancestral environments. Previous research has found evidence for two types of envy: benign envy, which drives greater effort and self-improvement; and malicious envy, which drives hostility toward the better-off target. We predicted that perceived resource scarcity would stoke either type, moderated by individual differences. Specifically, we predicted that high self-esteem would steer people toward benign envy and self-improvement, whereas narcissism would spark malicious envy. After completing the Rosenberg self-esteem scale and the Narcissism Personality Inventory (NPI-16), participants were randomly assigned to either read an article detailing severe cuts to university financial aid budgets (scarcity) or an article summarizing various forms of financial aid (control). Each article ended with the same envy-inducing paragraph about a particularly affluent scholarship-winner, after which participants completed a measure of both envy types, capturing feelings, appraisals, and behavioral tendencies. Results show that self-esteem predicts less malicious envy, while narcissism and scarcity predict more. Self-esteem and narcissism interact such that self-esteem dampens the effect of narcissism on malicious envy. Self-esteem predicted benign envy when narcissism was low, but not when it was high.