This study explores a crucial role of empathy in leadership style, focusing its impact on employee wellbeing. Through a comprehensive analysis it aims to inform leadership practices to develop a positive workforce environment, enhancing the overall organizational wellbeing. Empathetic leadership involves the understanding follower’s emotions and taking proactive caring actions, the leadership style works with the mediation of distributive justice that create a perception of fair and equal allocation of resources and rewards in organization. Such leadership style promotes positive relationships, enhanced teamwork and contribute in organizational productivity. Empathetic leaders possess skills that are crucial for adapting global trends and creating supporting work environment, particularly in adapting organizational change. Employee wellbeing is crucial for organizational success, which is significantly influenced by empathetic leadership with the perception of distributive justice, resulting in higher job satisfaction, organizational commitment and overall enhanced work environment.