Recent studies have shown that authoritarian leadership is generally considered a less motivating leadership style. However, it may help managing potential risks when dealing with distrusted subordinates. This strategy can also influence the quality of leader-member exchange (LMX). In this study, we aim to explore the relationship between supervisors’ distrust in their subordinates, authoritarian leadership, and the quality of LMX, while considering the moderating effects of supervisors’ incremental beliefs and subordinates’ impression management. To test the hypotheses, we collected a sample of 77 workgroups from various organizations in Taiwan. Results showed that: a) Incremental belief moderates the relationship between distrust and authoritarian leadership. When incremental belief is low, distrust is positively associated with authoritarian leadership, whereas when incremental belief is high, the association becomes negative. b) Authoritarian leadership is negatively correlated with LMX. c) Impression management counteracts the negative relationship between authoritarian leadership and LMX. Limitations of this study and directions for future research are discussed.