More recent inquiries into the relationships between scholarship awards and student leadership have produced promising findings. Using data set similar to the one in this study on the Gates Millennium Scholars (GMS) program, various researchers have found that GMS recipients were more likely to hold leadership positions on campus (Hurtado, Nelson Laird, & Perorazio, 2004; Sedlacek & Sheu, 2004). St. John, Rowley, and Hu (2009) found that desired student leadership outcomes are linked to learning experiences on campus. The present study integrates all these elements to explore the relationships between scholarship awards, student engagement, and leadership capacity of college graduates using additional longitudinal data from the GMS program. The findings from this study point to three conclusions. First, scholarship awards like the GMS are positively related to student academic engagement and social engagement in college, which in themselves are meaningful outcomes (Shulman, 2002). Second, student engagement in college activities has substantial influences on the development of leadership capacity of college graduates. Third, high-achieving low-income students of color who received scholarship awards tend to have higher level of leadership efficacy and are more likely to take on leadership positions after college graduation. Implications of these findings for educational policy and practice are discussed. (Contains 5 tables and 1 figure.)