Social congruity theory pointed out the great struggle for female leaders to fight against is the dilemma between the stereotypical gender role and leader prototype. The current study proposes a moderated mediation model to examine how female leader’s gender-manager identity integration (GMII), degree to which two social identities are perceived as compatible with or in opposition with each other, has its positive effect on helping them gain balance between the two possibly contradicting identities, and performing a blending leading style perceived by followers as transformational leadership. And in turn positively influences followers’ loyalty to supervisors. Further, according to interactionism in identity theory, diversity of gender-related cues in the organization has also been included in the model as it may strengthen the relationship between identity integration and transformational leadership and the overall mediation effect. Since little is known to the concrete behavioural pattern and mechanism of identity integration, the study not only contributes to the literature of identity integration, but also turns the table for female leaders in recognition of the advantage of combing the two social identities and fulfils the need of organizations calling for more transformational leaders in current trend. The current study acquired a sample of 32 managers and 87 employees. Though the results merely support the predicted relationship between GMII and transformational leadership, additional analysis focusing on the effect of identity integration within female leaders themselves found the interaction of GMII and gender-inclusive policies and practices have significant effect on elevating female managers’ perceived psychological safety.