Since the beginning of recorded history leadership has played a vital role in determining the course of history as well as managing the affairs of human society. There is a strong demand for good leadership in family, business, organizations, governments, political parties etc. i.e in all spheres of living. That is why in modern time huge amount of money is spent in preparing leaders with high qualities, training personnel and improving human relations in all types of formal and informal organizations. Organizations are now characterized by differences in contributions of their participants. All these indicate that leadership is one of the core concerns in our social action. In western literature, the phenomenon of leadership has been studied widely and we find that this has been approached in different ways in respect of leadership style, qualities, functions etc. Islam as a divine code of life has a clear dimension to add to this issue.