The purpose of this research was to examinate the effect of transformational leadership on employee work engagement of Universitas Muhammadiyah Yogyakarta (UMY). Where transformational leadership consists of four dimensions that must be fulfilled that is inspirational motivation, idealized influence, intelectual stimulation and individualized consideration. The samples used were 100 permanent employees, staff section (besides lecturers) of UMY and selected by purposive sampling method. The data used in this study is primary data that collected through questionnaires distributed to the respondents. Analysis of the test data using validity and reliability test, multiple linear regression test, t test, F test and coefficient determination test. The results showed that transformational leadership has a parcial significant influence and significant as well as simultaneous and significant impact on employee engagement work of Universitas Muhammadiyah Yogyakarta.