The Indian Knowledge System (IKS) is an ecological form of epistemological tradition that incorporates into one system of evaluation ethics, action, self-regulation and social responsibility as the conditions of a prosperous life on an individual and social level. Although IKS has been studied extensively in philosophy, education, sustainability, and governance, its use in the theory of leadership is still disjointed and under-theorised. In this research, the conceptualisation of Dharma-Based Leadership is developed as a native leadership construct within IKS that is based on Dharma, Karma Yoga, Seva, Svadharma, Lokasangraha, and Trusteeship as some of its principles. The present study provides a conceptual model of Dharma-Based Leadership as a normative and values-oriented model of leadership in opposition to Western instrumental leadership through a systematic review of classical Indian literature and modern academic research on the topic of IKS, ethics, and leadership. The review shows the combination of inner self-discipline with outer social responsibility in Dharma-Based Leadership, which provides a culturally fitting system of ethical governance, stakeholder orientation and sustainable leadership. Theoretically placing Dharma-Based Leadership within IKS, the present study will advance the body of indigenous management and form a basis for future empirical work in the field of leadership, governance, and sustainability, especially in the context of new economies like India.