Abstract Channel cutoff is the process by which an active lightning channel cools down, goes dark, and loses its ability to effectively conduct electricity. Current cutoff precedes several lightning phenomena, notably dart leaders and return strokes, but the process by which a hot, highly‐conducting leader channel can undergo current cutoff is poorly understood. In this work, we present self‐consistent simulations of positive leader propagation, which include coupled treatment of electrodynamics and plasma physics. The unstable positive leader spontaneously undergoes channel cutoff and creates the conditions for the emission of dart leaders, that is, it accumulates a packet of negative charge at the intersection between cutoff and conducting channel segments. A residual conductivity in the cutoff section facilitates the conversion of the electric field enhancement into a traveling wave, which retraces and reionizes the channel. This is critical for allowing the frail positive leader to keep propagating.