This research is an analysis of the correlation between transformational leadership, psychological capital and job satisfaction within the Chinese textile industry. The results show that transformational leadership plays a key role in determining employee satisfaction. To achieve the soundness of the research instrument, the reliability and validity of each dimension of the construct were tested using SPSS, and the hypothesized relationship between variables was tested through a partial least squares structural equation modelling using Smart PLS. It also showed that transformational leaders provide increased job satisfaction through motivation and empowerment, and that psychological capital helps people better tackle challenges. Specifically, transformational leadership not only contributes to job satisfaction via the development of a sense of empowerment, but also by ensuring the psychological well-being of the workers.

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