This study focuses on Transformational Leadership and Karma-Yoga linkage and its main objective is to test the hypothesis that the Karma-Yoga is positively related to Transformational Leadership. Transformational Leadership comprises of four factors— idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration as identified by Bass (1998), the Transformational Leadership Questionnaire (TLQ) developed by MySkillsProfile.com was used to measure these factors of Transformational Leadership while the Karma-Yoga Assessment Questionnaire (KAQ) captures the four characteristics of Karma-Yoga such as significance of work, successful work, detachment from work and setting an example developed by Menon & Krishnan (2004). Both validity and reliability of the measures of the two independent variables i.e the Transformational Leadership and the Karma-Yoga have been tested and found to be acceptable. The survey included a large private sector organization and one large public sector organization based in Eastern India. The random sample was comprised of 235 male and female managers out of which 116 responded for the survey. An examination of the results reveals that transformational leadership characteristics that emanate exclusively from personal qualities of the leader have a very strong positive relationship with Karma-Yoga. Managers practicing Karma-Yoga can very easily practice Transformational Leadership and vice-versa and they have a great promise for organizational development.