Purpose-driven leadership is increasingly recognized for its potential to enhance employee engagement, satisfaction, and organizational success. This chapter explores how purpose-driven leadership fosters a meaningful work environment by aligning organizational goals with employees' personal values. It examines the impact of purpose on organizational culture, employee engagement, and overall happiness. Key challenges, such as misalignment and resistance, are discussed, alongside strategies for effective implementation. The chapter also highlights future trends and innovations, including the integration of AI, the focus on social and environmental impact, and advancements in technology that will shape the evolution of purpose-driven leadership. By adopting best practices and measuring impact, organizations can leverage purpose-driven leadership to drive sustainable success and create a fulfilling work environment.