This study aimed to explore the importance of participative leadership and its relationship with the development of intellectual capital at the University of Taiz. A descriptive approach was adopted in conjunction with a quantitative analytical approach using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study sample consisted of 191 participants from Taiz University, including both academic and administrative staff. The sample was selected using the snowball sampling technique due to the difficulty of reaching the entire target population. The analysis results indicated that the level of implementation of participative leadership—across its three dimensions (delegation of authority, participation in decision-making, and human relations)—remains below the desired level at the university. Additionally, the results revealed a statistically significant positive relationship between participative leadership and the development of intellectual capital. Based on the findings, the study recommended enhancing the application of participative leadership within the university, given its significant positive impact on developing intellectual capital. This can be achieved by supporting practices of authority delegation, expanding participation in decision-making, and improving human relations within the academic work environment. | :Keywords· Participative Leadership· Intellectual Capital· Taiz University |