Abstract-Based on a sample of 186 family businesses in China, this study examined the adoption of transformational leadership in Chinese family businesses, and its impacts on the organizational commitment of family employees. Attitudinal and behavioral data were collected from both family business owners and family employees. With a China-specific version of leadership questionnaire, this study identified that a high level of transformational leadership behavior was practices by Chinese family business owners. Results of multivariate analyses further indicated that family business owners' transformational leadership behavior has positive effects on family employees' value commitment and commitment to stay.