As a result of the growing shortage of nurses and the dramatically changing role of the front-line nurse manager, leadership education for nurses is of critical importance. The purpose of the project described in this article was to design, implement, and evaluate an innovative model of nursing leadership development for students enrolled in registered nurse to bachelor of science in nursing or registered nurse to master of science in nursing programs. A guided "action-learning" course was designed that focused on both core knowledge and experiential learning. The course was developed with the assistance of an advisory panel of prominent nurse leaders with expertise in administration, health policy, informatics, and nursing education. The prototype course was offered for the first time as an elective in Spring 2003. Evaluation data indicated that the course was considered valuable by students and with modifications suggested by students, faculty, and advisory panel members, the course would be offered regularly as part of the curriculum. Recommendations also included adapting course content to a continuing education format.