The research paper aims to find out how ethical leadership and the trust of employees in the leader fosters employee engagement in the workplace. The study empirically tests research hypotheses using a sample size of 263 respondents from unicorn startups based in Kolkata, Bhubaneswar, and Jamshedpur. Utilising a mixed-methods approach, questionnaires were distributed through personal references and email. The results of the study suggest that ethical leadership plays a significant role in promoting employee engagement. Employees who consider their leaders to be ethical are also more likely to trust them. Also, this trust leads to higher levels of employee engagement. The findings also suggest that confidence in the leader also mediates the association between ethical leadership and employee engagement. This translates into a committed, engaged, resilient workforce with low attrition rates. The study contributes to understanding the relationship between ethical leadership, trust in the leader, and employee engagement in unicorn startups. Ethical leaders serve as role models and inspire employees to align their behaviours with ethical standards.