The aim of this review was to evaluate the effect of leadership styles of nurse managers on nurse and organisational performances and identify the research gaps. The literature search using Google Scholar yielded 53 articles on the entire range of the topic. Although nurses play a vital role, their performance can be significantly affected by the leadership style of the nurse manager under whom they work. Both positive and negative effects are possible. Negative effects may lead to errors in patient care, delayed or poor service delivery and even leaving the organisation. The nurse has no job satisfaction. High turnover of nurses, poor enrolment in nursing schools, financial loss to the hospital for orienting the new nurses and loss of reputation if there is high turnover rate and their impact on patient care are serious issues. Increasing trend of medical errors demonstrate the importance of providing the right work environment and empowerment to the nurses and good leadership by nurse managers for their motivation and high level of performance. Research gaps related to eight issues and problems were identified from the review.