The government is pushing for greater economic autonomy in villages to bridge the economic disparity with cities. Village-Owned Enterprises (VOEs) offer a potential solution for economic change and community welfare. Research on leadership within VOEs, exemplified by the Etawa Milk Factory in Trenggalek Regency, is crucial for promoting effective governance. This study aims to explore the impact of transformational leadership on VOEs development, employing a qualitative case study approach. It draws upon transformational leadership theory, focusing on idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Data collection involved observations, interviews, and documentation review. Results indicate that transformational leadership qualities in VOEs heads contribute to successful development, emphasizing the ongoing relevance of this leadership style in VOEs management. Keywords: transformational leadership, village-owned enterprises, Etawa Milk Factory
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