This study explores the relationship between Digital 
Transformational Leadership (DTL) and Employee Retention (ER), 
while also investigating the role of Job Satisfaction (JS) as a mediating 
factor in this relationship. Much disruption and change have resulted 
from political unrest, economic uncertainty, and digital development. 
Therefore, change management continues to be a major concern for HR 
directors and is currently a popular trend in the industry related to policy 
implementation in the public sector organizations in Egypt. Employees 
are becoming less agile to adapt to change and administrative efficiency 
is at stake. Prioritizing employee job satisfaction to align with the latest 
theories related to Behavioral Economics where employees' decision 
making aligns with both policy implementation of digital transformation 
in leadership strategies and employee retention enhances the originality 
of the research. The study's technique methodology is convergent mixed 
methods. The sample included employees from 10 companies that 
produced military products in Egypt (following the Military Production 
Ministry) made up the sample, in addition, 200 HR managers and staff 
members working with technology in the chosen companies were the 
focus of this study. Regression analysis, correlation, and the structural 
equation module are statistical analytical tools that apply SPSS. This 
study demonstrated that the relationship between Digital 
Transformational Leadership and Employee Retention is mediated by 
Job Satisfaction. Moreover, it endeavors to develop and validate a 
framework that underscores the significance of Job Satisfaction (JS) in 
enhancing employee performance within the context of Digital 
Transformational Leadership (DTL) and Employee Retention (ER) in 
the workplace