This chapter presents a critical review of leadership from an Islamic perspective and discusses how Islam offers a balanced and holistic approach to leadership that is different than the dominant secular ones. It starts with a discussion of balanced leadership as a recent approach to leadership that has been associated with higher levels of performance and/or economic growth in some fields such as education, psychology, and project management. This is followed by an overview of leadership research and how the concept of leadership has been developed over the years. The third section provides a critical and comprehensive review of leadership from an Islamic perspective and discusses how Islam includes some unique and universal principles that correspond with the Western traditions that take a moral orientation. This is followed by a discussion of charismatic, transformation, and servant approaches as they relate to the core principles and values of Islamic leadership. The final section proposes a model of balanced leadership from an Islamic perspective (BLIP model). The model demonstrates the leadership pillars, roles and qualities that would lead to balanced, effective, and sustainable leadership from an Islamic perspective taking the leadership of Caliph Harun Al-Rashid as an example of its application.