The study explored the impact of leadership style of teacher on the performance of students in the light of Hersey and Blanchard situational model. Data were collected through readiness level scale and achievement tests from 80 students of 8th grade in Lahore city using a pretest-posttest experimental design. Descriptive and inferential statistics were applied for data analysis. It was revealed that the posttest performance of experimental group was significantly higher than their pretest performance as compared with the control group. Results also showed that readiness level of students can be changed through leadership style of the teacher which has direct impact on students' performance. There was a significant difference in achievement scores of 'telling' and 'selling' intervention techniques against 'participating' and 'delegating' styles reflecting a strong positive impact on the performance of students particularly having low readiness level. It was suggested that educational administrators should provide training to teachers to use situational approach at different learning levels to improve students' performance.