This study aims to conduct a comprehensive literature review on the relationship between effective leadership and sustainable development. Leadership and sustainable development are deemed crucial as development cannot occur without effective leadership, particularly in social, human, and cultural realms. Effective leadership is essential for sustainable development, requiring an inward journey where leaders must first grasp self-awareness and a relational perspective, enabling them to collaborate effectively with others for meaningful change. Leaders must recognize the importance of collective action at both national and organizational levels, demonstrate a willingness to learn, and champion ethical behavior and standards. Sustainable development is seen as an iterative process involving planning, implementation, and monitoring, with leaders bearing significant responsibility in this cycle. Leadership and sustainability involve the endeavor to connect individuals, resources, and locations to address socio-ecological challenges like climate change and biodiversity loss actively. This study employs an extensive literature review spanning leadership and sustainable development, focusing on key assumptions and assertions in these fields. In total, twenty-six empirical studies were reviewed, which were selected keeping in view the different criteria laid down by the researcher. Most of the studies found that a strong and significant correlation exist among effective leadership and sustainable development. However, some studies have revealed the reverse and negative effect of sustainable development on leadership. By critically assessing existing literature, this review contributes to a deeper understanding of how effective leadership can serve as a catalyst for promoting sustainability across diverse contexts, paving the way for informed policy decisions and managerial practices aimed at achieving enduring socio-economic and environmental progress