This study investigates whether work engagement mediates the relationship between transformational leadership and service climate. We also examine whether self–other agreement on transformational leadership act as a contingency to the expected relationships. Data were collected from two separate samples. The first sample consists of 1,226 employees of a financial services company while the second sample consists of 291 followers and 30 leaders from an audit company. The results support the view that work engagement mediates the relationship between transformational leadership and service climate. Polynomial regression and interaction analyses show that the relationship between transformational leadership and service climate is moderated by self–other agreement.