This research aims to analyze the influence of transformational leadership of the owner and the influence of branch manager transformational leadership on employee engagement mediated as intrinsic motivation in Waroeng Special Sambal Region of Yogyakarta. The information obtained in this research is useful for the company as a consideration to further increase employee engagement and the application of transformational leadership in Waroeng Spesial Sambal region of Yogyakarta Sampling technique in this research is simple random sampling. Methods of collection by using questionnaires and obtained 106 respondents. Data analysis using Structural Equation Modeling (SEM) with AMOS program as analysis tool in this research. The results of this research indicate that transformational leadership of the owner does not affect the employee engagement, transformational leadership branch manager has a positive effect on employee engagement, intrinsic owner motivation positive effect on employee engagement, intersik branch manager motivation positive effect on employee engagement, intrinsic motivation mediate leadership transformational owner employee engagement, intrinsic motivation does not mediate the transformational leadership of branch managers to employee engagement