Effective leadership emerged as a critical determinant of employee performance and organizational effectiveness in public sector institutions globally. In Uganda's local government system, leadership styles significantly influenced service delivery outcomes, employee motivation, and institutional capacity. Mbale Local Government operated within a complex governance framework requiring adaptive leadership approaches balancing hierarchical accountability, participatory governance, and performance orientation. This study examined the influence of leadership styles on employee performance in Mbale Local Government using a cross-sectional survey design with mixed-methods approach. The research targeted 162 respondents comprising district leaders, departmental heads, supervisors, and frontline employees. Data was collected through structured questionnaires and in-depth interviews, achieving a 93% response rate. Analysis employed descriptive statistics, Pearson correlation, and multiple regression techniques. The study revealed that leadership styles significantly influenced employee performance (R² = 0.754, F = 51.24, p < 0.001). Transformational leadership (β = 0.438, p < 0.01), participative leadership (β = 0.392, p < 0.01), supportive leadership (β = 0.347, p < 0.01), and achievement-oriented leadership (β = 0.289, p < 0.05) significantly predicted employee performance. Findings indicated that employees under transformational leaders achieved 72% performance target realization compared to 43% under autocratic leaders. Departments with participative leadership demonstrated 58% higher employee satisfaction and 46% improved innovation. Leadership quality scored 3.24/5.0 overall, with transformational leadership at 3.41, participative leadership at 3.28, but autocratic tendencies persisting at 3.67, indicating mixed leadership practices. Leadership styles significantly influenced employee performance through motivation mechanisms, empowerment practices, supportive environments, and performance expectations. Transformational and participative leadership enhanced performance, while autocratic and laissez-faire approaches constrained employee effectiveness and organizational outcomes. Mbale Local Government should implement leadership development programs emphasizing transformational and participative styles, establish leadership competency frameworks, strengthen performance-oriented leadership practices, create feedback mechanisms, invest in continuous leadership training, and institutionalize democratic leadership cultures aligned with public service values.