The purpose of this paper was to examine the relationship between school organizational climate and teachers' job satisfaction. A quantitative survey method was applied, and three broadly hypothesized relationships were tested with a sample of 245 teachers from six government secondary schools in district of Penampang, Sabah, Malaysia. The instrument used in this study was the modified version for combination of two questionnaires: Organizational Climate Index and the Teachers' Job Satisfaction Questionnaire. The findings indicated that there is a significant positive relationship between school organizational climate and teachers' job satisfaction. The teachers in this study were found to be fairly satisfied with their job, with the responsibility factor as the biggest contributor to job satisfaction. This study found that there is no significant difference in levels of job satisfaction between the teachers' gender (male and female). Based on the years of service in their current school, there was a statically significant difference in the level of job satisfaction among the teachers. These findings revealed that the secondary schools in Sabah have a positive and open climate, with the professional teachers' behaviour factor as the biggest contributor. The results of this study indicate the necessity to provide positive organizational climate and up keeping teachers' job satisfaction by policy makers and principals with hope in enhancing the quality of schools in Malaysia.