Using an open-ended questionnaire, this research firstly collects data from 249 managers and employees in various companies to identify behaviors and characteristics of transformational leadership in China. A content analysis reveals that transformational leadership includes eight specific categories in China. Then, transformational leadership questionnaire (TLQ) is developed in the second study by means of expert discussion. Exploratory factor analysis (EFA) of data from a sample of 431 employees shows that transformational leadership is a four-dimension construct in China, including moral modeling, charisma, articulate vision and individualized consideration. The third study further confirms TLQ’s construct validity through confirmatory factor analysis (CFA) of data from another sample of 440 managers and employees. Internal consistency analyses and hierarchical regression analyses indicate that TLQ has sound reliability and concurrent validity.