Transformational leadership is one of the most widely applied leadership styles in modern organizations. Transformational leadership is believed to be able to improve employee performance, particularly among Generation Z, who are increasingly dominating the workforce. Generation Z has distinct characteristics, such as a preference for flexible work environments, technology-based systems, open communication, and leaders who can provide inspiration and personal development opportunities. However, in practice, several challenges remain, including generational gaps, differences in work values, and suboptimal implementation of transformational leadership across organizational sectors. This study aims to analyze the effect of transformational leadership on Generation Z performance through a literature review of various academic journals. The method used is a literature review of 10 selected articles retrieved from Google Scholar using relevant keywords. The results show that transformational leadership generally has a positive effect on Generation Z performance. This influence occurs through increased motivation, work engagement, job satisfaction, and innovation. However, some findings indicate that the effectiveness of transformational leadership may depend on organizational context and employee acceptance. Therefore, adaptive implementation of transformational leadership is required to optimize Generation Z performance across various organizational sectors.