This article seeks to contribute to the discourse on mindful leadership by drawing on Daoist philosophy as recorded in the Daodejing (Book on the Way and Virtue). Without a clear articulation of its normative underpinnings, mindful leadership can be easily exploited by leaders for immoral agendas and outcomes. The existing literature describes Daoist leadership as antithetical to autocratic leadership, and is unimposing and ethical. Giving additional insights to the construct of Daoist leadership, this essay argues that a Daoist leader exemplifies dao (Way-making) and wuwei (noncoercive action). Way-making is about influencing followers towards a common goal through the leader’s de (virtue). In addition, a Daoist leader promotes wuwei by enacting non-interfering, inspiring, liberating and nurturing management practices. Daoist principles provide an ethical foundation of mindful leadership by replacing McMindfulness with attentiveness to moral virtues. By foregrounding the centrality of ethics in leadership, this study seeks to open a line of inquiry and raise thought-provoking questions on the normative basis of mindful leadership.