This study aims to systematically review and analyze effective leadership and sustainable innovation. The present study incorporated different research designs and the review were based on the published standard, namely PRISMA statement (Preferred Reporting Items for Systematic Reviews and thematic Analysis). This study has considered 80 related studies using Scopus as the primary database for this systematic literature review. Three key themes emerged from a closer examination of these articles: innovativeness, innovation performance, and innovative behavior at work. Transformational leadership was the style of leadership that received the most attention. Leader’s innovative strategies and subordinate’s innovative task performance were mostly associated with overall performance in achieving sustainability. The authors of 31 of the 80 publications included empirical research. In most of the earlier research, social exchange theory and resource-based view theory have been utilized. The authors of the studies included in this study’s synopsis of how leadership affects sustainable innovation did not reach a consensus on their empirical findings. This comprehensive evaluation of the literature also includes several restrictions and suggestions for the way forward.