In the current era, leadership in higher education faces unprecedented challenges as a result of neoliberalism's influence. To effectively provide instructional leadership, higher education leaders and administrators need to acquire new skills and strategies. The issues of inadequate funding, increased workload, massification, and marketization in universities necessitate skillful navigation to uphold educational quality. This integrated literature review examines the impact of neoliberalism on teaching and learning and explores the specific skills and capacities required by university leaders to deliver effective instructional leadership. Through a comprehensive review, we shed light on the essential leadership skills necessary within the context of neoliberalism. By addressing these challenges head-on, leaders can navigate the neoliberal waters and build the capacities needed for successful instructional leadership in higher education.