The purpose of this empirical research is to address leadership within a complex multicultural context; namely Islamic organizations within a contemporary Western society (Australia). The researchers utilized qualitative analysis of triangulated, predominantly qualitative data. The analysis drew on core elements of grounded theory. It was found that both macro- and micro-dimensions of culture had an impact on Australian Muslim understandings of leadership and subsequently had an impact on leading. The analysis also uncovered intra- and inter-cultural complexity within Muslim organizations. The concept of an ‘iron cage’ of micro-cultures emerged to integrate these findings. An abstract storyline is posed wherein a new leadership identity will facilitate empowerment and uncertainty resolution about the stress of cultural complexity, resulting in more effective leadership.