Based on the theoretical framework on transformational leadership style, this study examined the impact of leadership on engaging employees working in virtual teams. It has also investigated trust as a mediator between leadership and engagement . The sample involved 305 participants working in a virtual team across eight industrial sectors. Data was collected using a questionnaire and was analyzed using Partial Least Squares Structural Equation Modelling (PLSSEM). The result s confi rmed that leaderships idealized influence impacts employee engagement in virtual teams; however, leadership’s inspirational motivation does not directly impact employee engagement. The results also confirmed that trust partially mediates the relationship between leadership influence and employee engagement and fully mediates relationship between leadership motivation and employee engagement.