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The twenty-first century is shaded with numerous scams that linked to the leadership decisions. Such incidents raise the questions on the ability and intentions of the leadership. It’s been years that leadership is being studies and majority of scholars just focus on the constructive side of the leadership but the darkest and negative traits or behaviours of leaders are not studies. One such behaviour is toxic leadership. The available literature identifies that investigation related to toxic leader and organizational learning with the mediating role of leader-member exchange quality is limited. The study is cross-sectional in nature and convenient sampling technique was employed to collect the data from the individual bankers working in banking sector of Islamabad. A total of 211 responses were used for the study. The descriptive statistics, correlation, linear regression and process macro v4.0 by Andrew F. Hayes were employed for the data analysis. The study findings justify that toxic leadership damages the process of organizational learning and leader-member exchange quality mediates the relationship between toxic leadership and organizational learning. The study further discusses the implications for the banks and practitioners to deal effectively with the toxicity of leaders at different levels.