The rapid advancement of digital technologies has brought about transformative changes across industries, offering both unprecedented opportunities and complex challenges. This intersection of digital innovation and sustainability requires leaders to navigate a dynamic landscape where technological advancements must align with sustainable development goals. This paper examines the critical role of leadership in integrating digital innovation with sustainability, highlighting the challenges leaders face and the opportunities they can leverage. Through a detailed analysis of case studies and theoretical frameworks, the paper explores how leaders can foster a culture of innovation while ensuring that their organizations contribute to environmental, social, and economic sustainability. The discussion includes practical strategies for overcoming barriers and driving sustainable innovation in a digital age.