Despite the critical role of leadership in conflicts management in public organizations, alongside with the various initiatives undertaken to enhance this role, ineffective conflicts management continues to be a big challenge in public organisations and at the Zanzibar State Trading Corporation (ZSTC) in particular. Consequently, this study looks into the factors constraining leadership role in managing conflicts and recommends strategies for improving leaders’ capacity to conflicts management at ZSTC. Qualitative approach was adopted and data were drawn from a purposive sample of 65 respondents through in-depth interviews, documentary review, Focus Group Discussions (FGDs) and non-participant observation. Findings confirmed that constraints to leadership in managing conflicts were in four categories; notably lack of effective communication, ineffective leadership and management practices, inequitable distribution of resources, and nonexistence of conflicts management institutions. To ensure effective leaders’ role in managing conflicts, leaders need to have sound plans, adequate budget, engage in financial resources mobilisation and ensure recruitment of staff with relevant skills, as well as build capacities of the existing staff on communication and conflicts management skills. The organization should devise effective policies to smoothen conflict management