Across the nation, quality leadership and positive school climate are critical to the success of every principal, student, and school. As a result, this study examined the relationship between teacher perceptions of the degree to which a principal displays the factors of transformational leadership and the perceived school climate. A purposeful sample of 399 teachers, representing five high schools in a large urban school district in southeast Texas, were administered the "Multifactor Leadership Questionnaire" to assess his or her principal in terms of being a transformational leader and the "Organizational Climate Description Questionnaire for Secondary Schools" to evaluate the climate of his or her respective school. The results of the HLM analysis indicated that there was a correlation between transformational leadership and the supportive, engaged, and frustrated elements of a school's climate.