Our study used the construct of congruence to conceptualize the degree to which transgender individuals feel genuine, authentic, and comfortable with their gender identity and external appearance. In Study 1, the Transgender Congruence scale (TCS) was developed, and data from 162 transgender individuals were used to estimate the reliability and validity of its scores. Two factors emerged: Appearance Congruence and Gender Identity Acceptance. TCS total and subscale scores were internally consistent. Supporting its construct validity, TCS scores were (a) positively related to life satisfaction and presence of life meaning; (b) negatively related to anxiety, depression, and body dissatisfaction; and (c) unrelated to social desirability and searching for life's meaning. TCS scores also garnered incremental validity by predicting life satisfaction, presence of meaning in life, anxiety symptoms, and depressive symptoms above and beyond the number of steps taken to transition. Study 2 confirmed the TCS's factor structure with a sample of 342 transgender individuals. The final 12-item TCS is a psychometrically sound measure that can facilitate both empirical investigations and clinical applications connected to transgender identity. "Additional online materials for this article are available to PWQ subscribers on PWQ's website athttp://pwq.sagepub.com/supplemental." (Contains 5 tables.)