This chapter focuses on the impact of leadership on employee stress in the hospitality industry. It is widely understood that work-related stress directly affects employees' physical and mental well-being. The chapter examines various reports on occupational stress. The study shows that the rapid evolution of technology and competitive environments contribute to increased employee stress. Such stress is detrimental to both employees and employers. Occupational stress arises from multiple factors, including the work setting, leadership, organizational aspects, and individual or group dynamics. Understanding and addressing each factor is crucial in mitigating stress. Leaders should manage their teams and exhibit their best leadership traits. Effective leadership directly influences employee stress levels. Reducing occupational stress will lead to positive and advantageous individual and organizational outcomes.