Differential leadership is considered to be a unique kind of Chinese leadership style which refers to leaders treat their in- and out-group subordinates in different ways. Research has confirmed that differential leadership consists of three components, namely favorable treatment towards in-groups (FTI), high expectation towards in-groups (HTI), and malice treatment towards out-groups (MTO). This study investigated the relationship between the three componets of differential leadership and group effectiveness using group-level data from 52 Taiwanese workgroups and their 297 members. The result showed that: (1). After controlling for the effect of differential LMX, differential leadership was positively associated with group effectiveness; (2). HTI was positively associated with group performance, group satisfaction, and group collective efficacy; (3). MTO was positively associated with group performance, satisfaction with group cooperation, group satisfaction, and group collective efficacy; (4). MTO was negatively associated with interpersonal conflict in group. Contributions and limitations were discussed.