This study investigates the evolving dynamics of ethical leadership within Jordan’s public sector, focusing on the Ministry of Water and Irrigation as a representative case. Through an ethnographic methodology involving in-depth interviews and participant observation, the research explores how leaders navigate the intersection of traditional socio-cultural norms and modern managerial frameworks. The findings reveal that ethical leadership in Jordan operates within a hybrid moral system, where formal values such as procedural fairness and institutional accountability coexist with—and are often challenged by—informal obligations tied to tribal loyalty, kinship networks, and communal expectations. Gender and generational shifts further complicate this ethical landscape, as younger and female leaders increasingly advocate for transparency, meritocracy, and gender equity. The study highlights the necessity of adopting a culturally responsive, pluralistic understanding of ethical leadership that reflects the complex realities of Jordanian organizations. These insights have practical implications for leadership development programs and contribute to the broader discourse on ethical leadership in non-Western contexts.