Leadership style has been suggested as an important factor affecting knowledge management in organizations. Transformational leadership has been acknowledged as having a positive general influence on knowledge management. However, there is a lack of empirical studies examining the relationship between transformational leadership and knowledge sharing in higher education within developing countries such as Iraq. This research seeks to evaluate the impact of the four components of transformational leadership, namely idealized influence, inspirational motivation, intellectual stimulation and individualized consideration, on knowledge sharing (both donating and collecting). Two hundred and fifty usable questionnaires were collected from public higher education institutions in Iraq. Structural equation modelling with AMOS 22 confirms the importance of transformational leadership in encouraging knowledge-sharing culture in higher education. The results reveal that, of the four components of transformational leadership, intellectual stimulation has the strongest effect on both the donating and collecting of knowledge. Guidelines are developed for academics as well as leaders, and evidence is provided in support of the use of transformational leadership to promote knowledge sharing within higher education in developing countries, particularly Iraq. The implications of the findings, along with some potential applications and suggestions for future research, are discussed.