In this study the relationships between transformational leadership style, school climate and teacher stress were investigated. Data were collected from 15 schools principals and teachers with grade configuration of six through ten in district Karak KP. Pearson product-moment correlation was used to analyze the relationship between leadership style and school climate, school climate and teacher stress, and leadership style and teacher stress. Result showed that transformational leadership style positively influenced the school climate. In positive school climate the stress level in teachers remained normal. The correlation between leadership style and teacher stress was also not significant; meaning that transformational leadership style minimized teacher stress level.