Using data from 36 combat teams, we examined how transformational leadership is connected with team mental model (TMM) similarity. In addition, we investigated the mediating role of TMM similarity and team efficacy in the link between transformational leadership and intra-team conflict. Data analysis revealed that well-defined transformational leadership behaviors were positively associated with TMM similarity, whereas TMM similarity was positively connected with team efficacy. Results also indicated that higher levels of team efficacy were associated with lower levels of intra-team conflict (task, relationship, and process). In addition, both TMM similarity and team efficacy mediated the link between transformational leadership and intra-team conflict. Implications of findings are discussed.