Leadership is one of the important concepts in the organizational behavior literature. Regarding the outcome of effective leadership that have both soft (satisfaction, commitment, belonging, loyalty and team making) and hard (performance, absent, stress and security) qualities, the subject has been one of the most discussed issue among OB scholars. The purpose of this study is to design an effective and authentic leadership model for Iranian public hospitals. Since, cultural differences among societies require theories that meet and address their problems, we have tried to develop a leadership theory that might best be fitted to the Iranian culture. To this end, we use the concept of generosity which is an important Iranian/Islamic value. Therefore, this exploratory mixed method study uses a grounded theory to explore a generous leadership theory in Iranian public hospitals. The statistical population of this study are the staff of 6 medical universities of Qom province. In order to find generous leaders, we distributed a customized interpersonal generosity questionnaire among hospitals staff. Thereafter, 39 managers were selected from those 15 managers who hold higher scores were single out for interview. We went forward through grounded theory processes to create a generous leadership theory for Iranian public hospitals.