The background of the research is to observe the importance of the leadership style of headmasters in advancing the educational institutions they lead. Transformational leadership is an appropriate leadership style applied by a headmaster. A headmaster must be able to maintain his charisma and good image among the society, motivate teachers and employees, and stimulate teachers to be always creative and innovative as well as understand and respect teachers and pay attention to their willingness to develop. This research was a qualitative research using descriptive method with research field type. The data collection was conducted using deep interviews, direct observation, and documentation in SD Muhammadiyah Ngluwar. The research result shows that: (1) The transformational leadership shown by the Headmaster of SD Muhammadiyah Ngluwar has run well proven by his being able to maintain his good charisma and image, always give support and suggestion for teachers to develop their self-potential through educational activities and trainings needed. (2) There are supporting and obstacle factors of the transformational leadership conducted by the headmaster which are school facilities, family and stakeholder support, and the minimum learning hours. (3) The impacts of transformational leadership of the headmaster can be seen from three aspects which are the obedience impact, cooperation impact, and work motivation impact.