The chapter discusses the evolution and research on transformational leadership over two decades, highlighting its importance in aligning organizational and individual interests. Transformational leaders inspire, intellectually stimulate, and consider their followers individually, in contrast to transactional leaders who focus on contingent reinforcement. Women leaders tend to be more transformational than men. The six-factor model of transformational/transactional leadership is widely accepted, but the need for fewer factors remains under investigation. Transformational leadership is more effective in various contexts, including business, military, and education. The chapter also explores the concept of transcending self-interests, the role of moral and personal development, and the impact of organizational culture and diversity on leadership styles. It emphasizes the need for further research to understand the mechanisms and contexts that influence transformational leadership.The chapter discusses the evolution and research on transformational leadership over two decades, highlighting its importance in aligning organizational and individual interests. Transformational leaders inspire, intellectually stimulate, and consider their followers individually, in contrast to transactional leaders who focus on contingent reinforcement. Women leaders tend to be more transformational than men. The six-factor model of transformational/transactional leadership is widely accepted, but the need for fewer factors remains under investigation. Transformational leadership is more effective in various contexts, including business, military, and education. The chapter also explores the concept of transcending self-interests, the role of moral and personal development, and the impact of organizational culture and diversity on leadership styles. It emphasizes the need for further research to understand the mechanisms and contexts that influence transformational leadership.