Chiral ligands work by binding to a central metal atom and creating a chiral environment around it. This complex then interacts with the substrates in a way that favors the formation of one enantiomer over the other. The mechanism involves various interactions such as steric, electronic, and hydrogen bonding, which collectively determine the stereochemical outcome of the reaction. The design of the chiral ligand is thus crucial, as it must be tailored to the specific reaction and substrate to achieve high enantioselectivity.