Abstract: Creativity is created by integration of innovative ideas, skills and expertise on base of formal education or experiences. Creativity in employee creates competitive advantage for organizations and it is considered as the most important aspect of an organizational environment. The aim of this study was to examine the impact of transformational leadership on employee creativity considering the mediating role of knowledge management capability. This study is applied in terms of goal and it is survey-descriptive in terms of data collection. The population of this study includes teachers and employees of Education Department of Sirjan. The sample size was determined using the finite population formula and 419 teachers and administrative employees were selected as a minimum sample size of study. Questionnaire was used to collect data and it was distributed among samples of study after that its validity and reliability were verified. SPSS software was used in the descriptive statistics section to analyze the data while structural equations model was used in the inferential statistics to test the hypotheses by using Lisrel software. The results showed that there is significant correlation between transformational leadership and employee creativity, between transformational leadership and knowledge management capability and between employee creativity and knowledge management capability. The results also showed that knowledge management capability mediates the relationship between transformational leadership and employee creativity.