The study conducts confirmatory factor analysis, correlation analysis and multiple linear regression analysis by using a sample of 146 work groups from pharmaceutical and telecom companies to explore the mediating role of team identification in Chinese context.. The results indicate that transformational leadership moderates the relationship between functional diversity and team knowledge sharing through team identification. Specifically, the increase of transformational leadership leads to knowledge sharing of diverse teams through increasing team identification. The authors discuss the theoretical and practical implications of these results and points out the direction of future research.