This study aims to deepen our understanding of Leadership Styles adopted by SME entrepreneurs and its impact on Employee Commitment. The study was limited to100 units from four selected SME clusters in Delhi namely Electrical Engineering Equipment, Electronic Goods, Food Products and Sanitary Fittings. 10% of the units from each cluster were selected for the study. A sample of 93 respondents consisting of 40 entrepreneurs and 153 employees was selected by the stratified proportionate random sampling technique. The results showed a negative relationship between Leadership Dimensions and Employee Commitment. The result also displayed moderate impact of Leadership Dimensions (Production Matters, Technical Matters, Financial Matters, Personnel Matters, and Marketing Matters) on Employee Commitment (Affective, Continuance and Normative Commitment).