Believing that differences between women and men should be recognized and valued—that is, endorsing gender identity awareness—is a common way of approaching gender diversity, including efforts to promote equity. However, such approaches can also reinforce stereotypes and justify existing inequalities, particularly when they reflect essentialist attributions for gender differences (Martin, 2023). To the extent that an identity awareness approach to managing gender diversity serves a system-justifying function, it should be associated with rejecting efforts focused on promoting women in the gender hierarchy, such as promoting women into leadership positions. Across five studies (one pre-registered; N = 1,421), we found that stronger beliefs in the fairness of the gender system predicted greater endorsement of gender identity awareness. Further, whether those who endorsed gender identity awareness supported or opposed gender-aware policies depended on the policy’s implications for the gender hierarchy: gender identity awareness predicted opposition to hierarchy-challenging policies and support for policies that reinforce traditional gender relations. These associations were driven in part by the endorsement of gender essentialism and rejection of opportunity attributions for gender differences. Finally, we provide preliminary experimental evidence suggesting that gender identity awareness functions as a motivated belief. This research offers insights into how gender identity awareness can undermine efforts to promote women in leadership.