Leadership studies within the field of business research in Malaysia and around the globe are expanding rapidly but remain divided and inconclusive. The hospitality industry provides significant contributions to Malaysia’s economy, reflecting its financial standing. Therefore, this paper intends to analyze the most recent research breakthroughs linked to transformational leadership and organizational performance in Malaysia’s hospitality industry, as well as to put forward recommendations for potential mediating or moderating variables. Past literature confirms that practicing and exhibiting transformational leadership qualities is relevant for hospitality leaders. Furthermore, it suggests that transformational leadership dimensions may significantly contribute to organizational performance. Finally, this study concludes that POS could bridge the gap in existing research on the relationship between transformational leadership towards organizational performance. This study strongly postulates that by examining the role of POS in different contextual studies, it is highly anticipated that the direct links between transformational leadership and the performance of an organization can be enhanced. Furthermore, implications and recommendations are also discussed.