Transformational leadership is embedded in the value system of the Canadian military ethos. Research suggests that transformational leadership can be viewed as a form of empowering leadership facilitating empowered psychological states among their followers, which in turn, enhances their performance, wellbeing, and engagement. The current study examined the associations between transformational leadership and Canadian Armed Forces members' psychological distress, morale, and pre-deployment readiness and the mediating role of psychological empowerment in these relationships. A path analysis model of the data collected through a pre-deployment survey completed by Canadian Armed Force (CAF) members ( N = 2,391) revealed that transformational leadership was associated with lower psychological distress and greater morale and these relationships were partly explained by increased feelings of empowerment, namely higher levels of autonomy, competence, and meaning. Furthermore, transformational leadership was also associated with higher perceptions of pre-deployment readiness, and this was partly explained by increased feelings of meaning and competence. The results of this research suggest that transformational leadership is an effective strategy to bolster psychological resources and readiness in the CAF.