This study examined the effect of leadership styles on creativity and innovation among employees. The sample (n = 300) was drawn from KP Pakistan, there were (n = 175) male and (n = 125) female participants. The research design of the current study was correlational and its sample was drawn from industries, management, hospitals, and academic institutes. Three scales were used in the study, The leadership styles assessment scale was developed by (Northouse, 2011). The creativity audit questionnaire authorship was of (Lifelong Learning Project, 2011) and the innovation scale was developed by (Hurt et al., 2013). The statistical techniques applied to the findings were independent t-tests, regression, and Tukey’s comparisons. The study examined how leadership styles directly affect creativity and innovation among employees of different organizations. Research revealed a significant relation between leadership styles, organizations, age group, gender and position with creativity and innovation of employees at p < 0.01, 0.001 and 0.05 levels. On the base of results, it was concluded that leaders’ leading styles significantly affect the employee’s creativity and innovation with minor differences of demographic variables. Study findings are applicable in organizational psychology, counseling psychology, consumer psychology, and positive psychology equally.