Leadership in Islamic educational institutions plays an important role in determining the quality, direction, and success of educational goals based on Islamic values. This study aims to analyze the dynamics of leadership in Islamic educational institutions, identify the factors influencing leadership, and describe effective leadership strategies in facing educational changes and challenges in the modern era. This research employed a qualitative approach using the library research method. Data were collected from various relevant sources, including books, scientific journals, articles, and previous studies related to leadership and Islamic education management. The data were analyzed descriptively through data reduction, data presentation, and conclusion drawing. The results of the study indicate that the dynamics of leadership in Islamic educational institutions are influenced by internal and external factors. Internal factors include leadership competence, organizational culture, human resource quality, and management systems, while external factors include technological development, globalization, government policies, and socio-cultural changes. Furthermore, transformational and participatory leadership approaches were found to be effective in improving educational quality and organizational performance. Effective leaders are required to be adaptive, innovative, visionary, and capable of integrating Islamic values such as trustworthiness, justice, and responsibility into leadership practices. The study concludes that successful leadership in Islamic educational institutions depends on the leader’s ability to balance Islamic principles with the demands of modernization and technological advancement in education.