Globalization, the war on terror, and reductions in manning have changed the role of the military from pure war fighting to complex and sensitive operations focused on ground combat, peace keeping, and humanitarian aid. This new role calls for a new kind of leader; a leader who is able to adapt to an ever changing environment, function in high stress scenarios, and achieve organizational goals; in essence, a leader who is self-efficacious. The purpose of this study was to identify the characteristics a military leader should possess in order to function effectively in this new role. A predictive, correlational study was used to investigate the research questions, which were what is the relationship between emotional intelligence (EI) and transformational leadership (TL); what is the role of emotional intelligence and transformational leadership in the development of a self-efficacious leader (SE); and lastly, what is the relationship between self-efficacy and performance. A sample of Naval personnel of ranks E-6 and above stationed at a destroyer squadron at Norfolk, Virginia was used for the study. All participants were in leadership positions either as NCOs or commissioned officers and were selected for their unique and direct leadership responsibilities. Results of this study suggest that the underlying core of military leader performance and success hinge on the influences of emotional intelligence and transformational leadership. This study found a strong correlation between EI and TL and the development of SE. Implications of this study are that self-efficacious military leaders can be developed through training and a focus on EI and TL. This study provides a clear direction for the selection and training of military leaders and also points to a new path for leadership development research.