The research study was carried out in a private university with course participants of Master's in Education (MEd) having a major in educational leadership and management. The purpose of the study was to enhance the creative potentials of educational leaders. Creativity invites the mind to think in diverse directions to make something novel which can improve our living standards with the changing times. Striving for effectiveness, efficiency and quality in every aspect of our life draws our imagination towards the need of creativity in a leadership role as well because leaders lead the minds and act as change agents (Kaufman, 2005). According to Lagari (2010) the chairman higher education commission Pakistan, all leaders need to enhance creativity to facilitate 'out-of-the-box' solutions. When you think there are no answers to a problem or an issue, then there are likely to be more possible answers for a creative leader. In order to enhance this emerging need of creativity for educational leaders the study was conducted with action learning as the methodology which will enrich the creativity of educational leaders (as education is the key to progress). The tools to collect the relevant data were semi-structured interviews, observations and focus group discussions. The process of data collection had three phases; in the first phase semi-structured interviews took place on the basis of which the participants were given some worksheets to enhance their creative potentials. The worksheets included activities for idea generation, lateral thinking, re-layering, etc. The second phase included focus group discussions (action learning phase) in which all three participants shared their professional life problems and explored alternative solutions. In the last phase semi-structured interviews were conducted, once again, to find out the application of participants’ learning worksheets and the action learning phase. The findings and analyses revealed that in order to face the challenges of the 21st century, leaders need to equip themselves with creative thinking skills. It also emerged from the interviews that the educational system which participants have gone through has hindered their creativity. Therefore, educational leaders need to enhance their own creative potential so that they can inculcate this aspect in teachers and students.