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Aims: To examine the effects of nursing deans/directors' transformational leadership behaviours on academic workplace culture, faculty burnout and job satisfaction. Background: Transformational leadership is an imperative antecedent to organizational change, and employee well‐being and performance. However, little has been espoused regarding the theoretical and empirical mechanisms by which transformational leaders improve the academic workplace culture and faculty retention. Design A cross‐sectional survey design was implemented. Methods: Nursing faculty employed in Canadian academic settings were invited to complete an anonymous online survey in May–July 2021. A total of 645 useable surveys were included in the analyses. Descriptive statistics and reliability estimates were performed. The moderated mediation model was tested using structural equation modelling in the Analysis of Moment software v24.0. Bootstrap method was used to estimate total, direct and indirect effects. Result: The proposed study model was supported. Transformational leadership had both a strong direct effect on workplace culture and job satisfaction and an inverse direct effect on faculty burnout. While workplace culture mediated the effect of leadership on job satisfaction and burnout, the moderation effect of COVID‐19 was not captured in the baseline model. Conclusion: The findings provide an in‐depth understanding of the factors that affect nursing faculty wellness, and evidence that supportive workplace culture can serve as an adaptive mechanism through which transformational leaders can improve retention. A transformational dean/director can proactively shape the nature of the academic work environment to mitigate the risks of burnout and improve satisfaction and ultimately faculty retention even during an unforeseen event, such as a pandemic. Implication: Given the range of uncertainties associated with COVID‐19, administrators should consider practicing transformational leadership behaviours as it is most likely to be effective, especially in times of uncertainty and chaos. In doing so, academic leaders can work towards equitable policies, plans and decisions and rebuild resources to address the immediate and long‐term psychological and overall health impacts of COVID‐19. [ABSTRACT FROM AUTHOR]