This chapter provides a detailed analysis of leadership practices in managing team cultural diversity in digitally advanced work environments. It highlights the necessity of evolving leadership approaches in diversity management to effectively tackle the opportunities and challenges presented by online work modes in international organizations. Drawing from a range of scholarly works, this chapter synthesizes the concepts of team cultural diversity, leadership, and digitalization. The chapter delves into how leaders through digital means such as AI and virtual communication, despite their inherent challenges, can foster unique avenues for the articulation of diverse opinions and the matching of specific skills with corresponding tasks across cultural boundaries. It emphasizes the importance of digitally aided leaders adapting to varying situations, promoting equity, and preventing bias in order to ensure fairness in the international work context. We use the insights gained from this literature study to offer advice for enhancing leaders’ digital leadership and diversity management in a technologically evolving international workplace. In particular, transformational leadership may guide the use of digital tools to elevate inclusion and unlock diversity’s informational benefits.