This study primarily aimed to investigate the impact of green transformational leadership on employees’ environmental performance and green work engagement in the hotel business. In addition to this, it sought to empirically examine the potential mediating effect of green work engagement in the association amid green transformational leadership and employees’ environmental performance in three- and four-star hotels in Egypt. For this purpose, a questionnaire was designed and sent to the chosen workforce to ascertain their thoughts on the study’s components (GTL, green work engagement, and hotel employees’ environmental performance) using their connections with HR managers and hotel staff at popular Egyptian tourist sites. The questionnaire was organized to take account of four main aspects: (1) the demographic attributes of the investigated participants, (2) green transformational leadership matters, (3) green work engagement, and (4) employees’ environmental performance matters. Structural equation modeling (SEM) was employed with a bootstrapping technique to examine the study’s hypotheses. The findings of the study revealed that green transformational leadership has a significant positive effect on green work engagement and environmental performance among hotel employees. Furthermore, the link between green transformational leadership and the hotel employees’ environmental performance was found to be significantly positively and partially affected by green work engagement.