Using a multilevel framework, we hypothesized that (a) individual perceptions of transformational leadership and (b) team-level transformational leadership climate would be positively related to individual adaptive performance. We also hypothesized that a stronger climate for innovation would enhance the association between transformational leadership and adaptive performance at the individual level. Hierarchical linear modeling conducted on data collected from 120 employees belonging to 35 teams and their managers in an organization operating in the aerospace industry confirmed our predictions. The significance and relevance of these findings for future research on transformational leadership and adaptive performance are discussed.