Education is the strongest instrument for any development or change in the world. It is the most durable, acceptable and popular method of creating a change necessary for future development by creating willingness and self-awareness amongst people. Education geared towards sustainable development enables the individuals to gain knowledge, focused attitude, necessary skills and particular values which are essential for the formation of sustainable future (UNESCO, 2014). The foremost focus of Education for Sustainable Development is to improve the quality of life without damaging environment. In this fast-changing world, leadership is the basic element for making sustainable development through education and other factors. This paper aims to study the significance of educational leadership in promoting sustainable development, its basic principles, core competencies and approaches required for effective leadership. The study also explores the challenges faced by sustainable leadership and ways to overcome these challenges. With the help of literature review, it can be pointed out that to implement educational policies effectively, a system needs competent leaders who have multifaceted qualities. Though there are many challenges for educational leaders, visionary leaders can create sustainable education system which will in turn help in making sustainable development in the arena of economy, society, environment (Ecosystem & Biosphere), enhancing social justice and fight poverty.