The purpose of this paper is to discuss the relationship of transactional and transformational leadership. Specifically, this paper looks at how transactional and transformational leadership interact with one another, particularly how transformational leadership augments transactional leadership. In order to look at this interaction, there is first a description of the characteristics of both leadership types. Next, several studies are reviewed in an effort to look at how transformational leadership augments transactional leadership. The studies are diverse across various types of organizations and industries in order to give a broader look at how transformational and transactional leadership characteristics interact.