Using leadership theory we examined whether transformational leadership mediates the link between the emotional intelligence of team leaders and three outcomes as perceived by followers: leader effectiveness team effectiveness and service climate. Data were collected from 859 employees working in 55 teams in a South Korean public-sector organization and results were analyzed at the group level. All variables were modeled in a path diagram and tested using hierarchical regression analysis and structural equation modeling. Same-source bias in the findings was controlled for by randomly splitting the sample into three separate groups. The results show that transformational leadership mediates the relationships between emotional intelligence and leader effectiveness as well as between emotional intelligence and service climate although not between emotional intelligence and team effectiveness. Practical implications of the findings are discussed together with limitations and ideas for future research.