Executive Summary This study asserted a theoretical framework of transformational leadership and its effects on several process and outcome variables among Asian Americans and Caucasian Americans from a levels of analysis perspective. Nomological relationships among the constructs of interest also were tested. Results indicated that effects of transformational leadership were positive, but generally stronger among Asian Americans than among Caucasian Americans. Results from Within and Between Analysis indicated that variation in perceptions of transformational leadership and other measured variables in the two ethnic groups was mainly due to individual differences. Based on these results, we offer several theoretical and practical implications.