Leadership development has become an essential component of software engineering education, particularly within capstone projects that simulate real-world collaborative environments. This study investigates how undergraduate students develop leadership competencies through participation in capstone software projects by employing a qualitative analysis of secondary data sources, including peer-reviewed literature, case studies, and documented student experiences. Guided by experiential learning theory, transformational leadership theory, and social constructivism, the research explores the processes through which leadership emerges, evolves, and is enacted in student teams. The findings reveal that leadership development is dynamic and context-dependent, shaped by communication practices, team interactions, decision-making responsibilities, and mentorship structures. While capstone projects provide rich opportunities for leadership growth, outcomes are often uneven due to variations in team composition, institutional support, and assessment practices. The study highlights the importance of integrating structured leadership training, reflective learning, and aligned evaluation mechanisms within software engineering curricula. By offering a comprehensive synthesis of existing knowledge, this research contributes to a deeper understanding of leadership formation and provides practical implications for enhancing educational practices in computing disciplines. Keywords: leadership development, capstone projects, software engineering education, experiential learning, transformational leadership, student teamwork, qualitative analysis