Jana Reddy, a former minister of Andhra Pradesh, was elected in a meeting of the newly-elected legislators of party in the presence of party's central observers Digvijaya Singh and Vayalar Ravi.
The Congress won 21 seats in 119-member Telangana assembly in the recent elections.
Jana Reddy thanked the legislators for electing him as the leader. He told reporters that the Congress will play the role of a constructive opposition and cooperate with the Telangana Rashtra Samithi (TRS) government for development of the new state.
Meanwhile, another senior leader D. Srinivas was elected as leader of the Congress party in the legislative council. Srinivas had also contested the assembly elections but had to taste defeat.