Departing from the static perspective of leader charisma that prevails in the literature we propose a dynamic perspective of charismatic leadership in which group perceptions of leader charisma influence and are influenced by group mood. Based on a longitudinal experimental study conducted for 3 weeks involving 116 intact self-managing student groups we found that T1 group perceptions of leader charisma mediate the effect of leader trait expressivity on T2 positive and negative group moods. T2 positive and negative group moods influence T3 distal charisma perceptions by affecting T2 proximal perceptions of leader effectiveness. The current findings offer critical insights into (a) the reciprocal relationship between group perceptions of leader charisma and group mood (b) the dynamic and transient nature of group perceptions of leader charisma (c) the importance of understanding negativemood in charismatic leadership and (d) the mechanism through which charismatic leadership perceptions can be formed and sustained over time.