The dynamic and turbulent nature of current competitive global economy has pushed companies to exploit their available resources as a means of achieving competitive advantage. In this regard leadership can be considered as a critical and essential because it has a great consequence on the performance of an organization. The study followed both descriptive and explanatory type of research design and quantitative study approach is used to investigate the relationship between Leadership styles and

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... employees' engagement at Ethiopian Airlines. The target population of this study was employees of Ethiopian Airlines working at Head Quarter, which includes the 7strategic business units. From 9,604 total populations of Ethiopian Airlines Head Quarters, 370 employees were selected as samples of the total population. Stratified random sampling technique was used to select the samples of the total population. As the study was crossectional, one time data was collected by using standardized questionnaires of leadership behavior (Multi Factor Leadership Questionnaire 3rd edition) and Urchtect work Employees engagement rating scale. Correlation and linear regression were used to analyze the relationship between Transactional & Transformational leadership styles and employees engagement dimensions. The regression results showed that Transactional & Transformational leadership styles have positive relationship with employees engagement. Moreover, all employees' engagement dimensions were significantly explained by Transactional & Transformational leadership styles .Generally, Transformative leadership has strong relationship with employees' engagement and leaders shall be more transformative to enhance and develop employees' engagement to the highest level.