This research was undertaken to fill a gap in the literature by addressing the issue of leadership process within an Islamic organisation operating in a Western context. With a few notable exceptions, leadership scholars have largely avoided the distinctive leadership dynamics within Islamic groups and organisations. This research has three primary aims: First, to generate a theory of leadership process within an Australian Islamic organisational context. Second, to generate better understanding of the interactions between the dynamics of Islamic leadership principles and Western leadership perspectives. Third, to generate a conceptual model that fits the specific features of the leadership process in this substantive setting. To fulfil the aim, the research applies grounded theory methodology. This thesis triangulates multiple data sources to inform about the essence of the leadership process. The data sources include interviews, observations and document analysis. The analysis of this multi-sourced data generates a processual theory of leadership. It derives a contextualised theory of leadership that explains the manifestation of leadership process within a substantive setting. The grounded theory and the basic social process is ‘Embracing Basics’.