Leadership is regarded as the prime factor for making improvements in educational institutions effectively and also facilitates the achievement of desired goals and objectives and making improvements in the system of education. It is one of the main factors linked with the achievement and failure of any organization. Leadership style is the way in which people are directed and motivated by a leader to attain organizational goals. Life skills are defined as “a group of psychosocial competencies and interpersonal skills that help people make informed decisions, solve problems, think critically and creatively, communicate effectively, build healthy relationships, empathize with others, and cope with and manage their lives in a healthy and productive manner. This study is based on the impact of leadership as a life skill in educational institutions. With the viewpoint of the school, the leadership of the principal is very important. His role and duties will affect all aspects of school organizational life. At the school organizational level, leadership of the principal is the main determinant which act as a link between the individual lives with the outlooks of any organization in the future. This study aims to how leadership as a life skill impacts the performance of educational institutions. This paper is a conceptual based paper which gives theoretical verification to support the idea. The results of the paper suggest that the leadership style is a strong element in enhancing the performance of any institution as it enhances the culture of the organization and the employees’ values in the organization.