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Deriving from JDR theory, this study explores the sequential mediating effect of school climate and teacher engagement between transformational leadership and innovative behaviour. Online survey data were collected from 1917 government school teachers in two north Indian states. Sequential mediation analysis was conducted in AMOS using the bootstrapping approach. Results showed that school climate and teacher engagement sequentially mediate the relationship between transformational leadership and teachers' innovative behaviour. Significant theoretical and practical implications are discussed at the end.