Background: Many challenges face any organization and its staff performance. To manage these challenges there is need to provide an organizational climate that encourages employees to be productive and makes them feel valued and empowered. Employees' empowerment provides significant benefits to the organizations as it makes employees feel that they are vital to the success of the organization. Aim of study: Was to assess relationship between organizational climate and psychological empowerment at governmental hospitals in Ismailia. Subjects and method: Research design: A correlational descriptive design was used in this study. Setting: The study was carried out at 3 governmental hospitals in Ismailia. Subjects: Staff nurses with sample size 156 were included in the study. Tools of data collection: Data were collected using organizational climate measure and psychological empowerment measure. Results: Organizational climate perceived by staff nurses at governmental hospitals in Ismailia as moderate climate, whereas their perception about psychological empowerment was good. Also, there was statistically significant correlation between the studied variables. Conclusion: There is moderate positive significant relationship between organizational climate and psychological empowerment among staff nurses at governmental hospitals. So, improving dimensions of psychological empowerments will be positively reflected on organizational climate improvement. Recommendation: Organization needs to work on energize their staff nurses' perceptions regarding their organizational climate through encouraging them to be creative and think out of box. Psychological empowerment of staff nurses needs to be improved especially for self-determination by encouraging them to be initiative and achieving sense of autonomy.