This paper examines the effects of transformational leadership (TL) on student educational satisfaction (SES) and student stress (SS). Asian students enrolled in business management program at colleges and universities in British Columbia, Canada were surveyed to find out their perceptions as to whether TL used by faculty members improves SES and reduces SS. Results suggest that SES is positively related to the improvement in the level of perceived TL used by instructors/professors. The empirical findings of this paper also suggest that the reduction in the level of SS is related to the improvement in the level of perceived TL used by instructors/professors. However, TL does not mitigate the stress of graduate level students. This paper offers useful insights for instructors based on empirical evidence.