The paper briefly explores the manifestation of ethical leadership and examines at length the dimension of character formation. It argues that personal mastery is indispensable to sound character formation because leaders with high personal mastery are more likely to exhibit a disciplined pattern of behavior that is guided by a deep personal vision and enduring moral principles. The paper then discusses some of the sources that the leader can tap to attain personal mastery that leads to the self-transformation of both the leader and of the followers.