This paper aims to analyze and describe the dominant traits that are typical Gen-Y and innovative leadership models of the 21st century and to develop applicative recommendations on innovative leadership approaches to the Gen-Y. Gen-Y is increasingly inevitable and has taken a 50% portion in several large companies in Indonesia. This description explains the characteristics of Gen-Y and innovative leadership models. Data were obtained from secondary resource reviews, reputable journals, documents and company records that have relevance to the topic of this paper as well as from the results of interviews and observations on some companies. Gen-Y is the generation of innovating, open-mind. They are expected to be effective leaders in the 21st century. Innovative leadership becomes one of the effective leadership to be understood and implemented by Gen-Y in leading the organization in the 21st century