Purpose: The purpose of this study is to highlight the importance role of transfer of training as a mediator in the relationship between training and service quality. Design/methodology/approach: The data of this study were collected from three sources: the employees of public sector organizations in Malaysia who participated in a Basic Financial Management training program, their supervisors and their colleagues through surveys. The data were analyzed using structural equation modeling. Findings: The findings reveal that transfer of training mediated the relationship between training and service quality. Research limitations/implications: The finding illustrate that management in public sector need to ensure that their employees apply the new learned knowledge and skills at the workplace following the training to maximize the return of training investment. Originality/value: This study extends the literature by providing empirical evidence that transfer of training has a mediating effects on the relationship between training and employee service quality in the context of public sector organizations in Malaysia, a non-Western context that located in Southeast Asia.