I have both sheaths, but I got them in the opposite order. My wave came with the leather sheath, and I bought the nylon sheath to hold the extra accessories (bit kit, bit extender, flashlight). To be honest, I wouldn't say one is better than the other, they are just different. The nicest feature of the leather sheath is that it has a snap (something that would have greatly improved on the nylon sheath IMHO), and it has a really slick form factor. Either way, I have no real complaints about either sheath, and at the price LM sells them, why not get a couple types to try out!