To be a good leader, a person must play the image of a leader that fits the implicit image of followers, while simultaneously demonstrating authenticity in his or her own way. However, theories explaining and guiding the process of developing such leaders are scarce. In this article, we argue that the practice of Eastern arts, such as martial arts, can be useful in theorizing the process because the ultimate purpose of such arts is similar to the purpose of leader development described above. Specifically, we propose that the traditional Japanese concept of “Shu-Ha-Ri,” which describes a three-step process of “following the established norms,” “moving away from the established norms,” and ”finding one’s own way to act naturally and creatively,” be applied to authentic leadership development. We illustrate how the Shu-Ha-Ri process occurs as leaders learn and advance to higher levels. Our theorization contributes to the management learning literature on how to learn to be a good authentic leader and to the management education literature on how to design leadership development programs.