The present study has been conducted to examine the effect of Transformational leadership and knowledge management processes on organizational innovation in Kharazmi University. The research methodology was descriptive and correlational. The population included all Kharazmi University staff that reached a total of 847 individuals. Through convenience sampling, 300 of the staff were recruited to make up the sample. In order to collect the data, three questionnaires were used: transformational leadership by Boss and Aulio (1995), knowledge management by Nonaka and Taguchi (1995), and organizational innovation by Choopani (2011). For data analysis, structural equation modeling, fitness indices and path coefficients were utilized. The results of the analyses demonstrated that 1) transformational leadership had no significant impact on organizational innovation at Kharazmi University (ß= 0.09, t= 0.48); 2) knowledge management processes had direct significant effect on organizational innovation at Kharazmi University (ß= 0.60, t= 3.66); 3) transformational leadership had direct effect on knowledge management (ß= 0.70, t= 4.52); 4) transformational leadership had indirect impact on organizational innovation at Kharazmi University via knowledge management processes (ß= 0.42, t= 2.29); 5) consequently, the suggested conceptual model enjoys appropriate statistical fitness
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