Purpose: Leadership is one of the very important as well as decisive factors in business environment. Following the Blau’s social exchange theory, this study discussed to analyze the despotic leadership effect on employees' job satisfaction in the Pakistani context. This research also analyzes the indirect association of despotic leadership and job satisfaction through the third variable named, emotional exhaustion (as mediator).  Method: Data is collected through an online self-administrated survey from employees working in the hotel industry of Pakistan. Descriptive analysis and inferential statistics were used. Moreover, conditional process technique was used introduced by Preacher and Hayes. Results: In conclusion, this study illustrates that despotic leadership style of the employees in hotel industry is a main antecedent of poor job satisfaction of the employees and this low job satisfaction becomes More low when employee experience the feelings of emotional exhaustion. Importantly, in this study it is found that emotional exhaustion does not mediate the relationship between despotic leadership and job satisfaction.  Originality: This research had added value to the existing literature on negative supervision in the hospitality sector, specifically in Pakistan. This has suggested organizations to identify prevalent despotic leaders and establish accountability mechanisms within the organizations.