In today's rapidly globalizing world, leadership has evolved beyond managing people to encompass the art of understanding and navigating cultural diversity. The ability to communicate effectively across cultures, embrace change, and adopt inclusive leadership approaches has become essential for success. This chapter explores the historical development of leadership and examines why cross-cultural leadership has emerged as a strategic competency in the modern era. Key leadership competencies such as empathy, flexibility, communication skills, and conflict management are highlighted, along with challenges including cultural biases, ethical dilemmas, perceptions of power distance, and language barriers. The impact of digitalization, particularly the rise of virtual teams and remote leadership practices, is discussed as a factor reshaping cross-cultural interactions and emphasizing the growing importance of digital leadership skills. Furthermore, the concept of sustainability is transforming leadership expectations, requiring leaders to act with environmental, social, and cultural responsibility. The chapter presents practical analyses through successful leadership examples and experiences from international projects, while also reflecting on the future vision of leadership. This study offers a comprehensive perspective on the changing dynamics of cross-cultural leadership, framed through the lenses of digitalization and sustainability.