The purpose of this project was to identify the impact of effective leadership on multicultural project teams. To examine this topic, a literature review of current literature was completed. The literature was supported by primary research which was analysed by conducting interviews with senior leaders and managers working with multicultural project team members. The sample was characterised by a significant number of diverse respondents between the ages of 27 to 60. The interviews yielded seven principles for effective leadership in the managing of multicultural team members. It was identified that leadership is a topic which includes aspects from a range of organisational responsibilities, the ability to select suitable team members and approaches for leading multicultural project teams. The analysis showed that cross-cultural transformational leadership was the most effective type of management for multicultural teams. In summary, effective leadership, which is characterised by the seven principles has a direct impact on multicultural project teams and their performance.