Objective: The aim of the present study was to analyze the relationship between the transformational leadership, organizational climate, and creativity of employees in the Departments of Sport and Youths of the South Khorasan state.Methodology: The research method implemented in this study was descriptive and correlational. The population sample included all the staffs in the Departments of Sport and Youths of the South Khorasan state (N=120). The questionnaires were distributed and the participants were asked to fill them. Then 113 questionnaires were returned and analyzed. For measuring the variables, the transformational leadership (Rafferty & Griffin, 2004), creativity (Rendssip, 1979), and organizational climate (Hallpin & kerafit, 1963) were used. The validity of the questionnaires were confirmed by the results of the confirmatory factor analysis. Then the reliability of the questionnaires was examined via Cranach’s alpha (0.86, 0.89, and 0.86). Finally, in order to find the relationship between the variables, the Pearson’s correlation and structural equation modeling were run.Results: All the factors involved were loaded properly to the model. The result of the study, based on the structural equation model, shows that the transformational leadership, both directly and indirectly, is in relation with creativity.Conclusion: If the managers of Sports and Youth Departments are looking for a friendly organizational climate and subsequently the creativity of their employees, they should prioritize the transformational leadership style.