A critical element for organization climate is the formation of organizational structures that make cross-functional knowledge and resource sharing possible and effective coordination of the process of functional innovation. This study aims; investigate organizational climate and functional innovation level among critical care nurses and explore the effect of organizational climate on functional innovation among them. The study subjects: No. = 95 critical care nurses. Setting; Sohag and Qena University hospitals. Tools of data collection; includes two parts; 1) organizational climate questionnaire, and 2) functional innovation questionnaire. Results: for both Sohag and Qena University hospitals the highest percentage were poor organizational climate (66%, and 70.8%), and low level of functional innovation (74.5%, and 66.7%). There were negative correlations between most organizational climate factors and functional innovation in Sohag and Qena University Hospitals. Conclusion; this study concluded that poor organizational climate and low level of functional innovation, and highly statistical significances differences between organizational climate and functional innovation at both Sohag and Qena university Hospitals. Recommendations: Increase awareness of nurses about the communicational activities. Manage organizations for innovation, create and maintain innovation culture, and ensure benefits of innovation for organizations and people