Iran’s higher education system, as one of the core public service institutions, faces profound challenges in creating public value, managing workforce burnout, and aligning with generational transformations. This qualitative–exploratory study aims to conceptualize the healing leadership style among a new generation of university managers (under 40 years old) and to develop a context-sensitive model. Data were collected through semi-structured interviews with 20 managers from public, Azad, and Payam Noor universities in Lorestan and Fars provinces and analyzed using classical thematic analysis. The findings indicate that healing leadership emerges from the integration of clinical psychology components (such as active empathy) and psychological capital (such as resilience) with digital tools. Through mechanisms such as emotional trust-building, empathetic control, and cognitive reframing, this leadership style seeks to balance organizational objectives with employees’ mental well-being. The principal outcome of the study is the indigenous “Digital Healing Wheel” model, which provides an integrated framework illustrating how healing leadership influences organizational commitment and reduces burnout. This model offers a practical foundation for policymaking that facilitates the transition toward human-centered university governance and the sustainable creation of public value.