This research was conducted at SD Negeri 2 Mergosono. The objective of this research is to determine the role of the principal's leadership so that it can improve teachers' performance at SD Negeri 2 Mergosono. Based on the interviews with Education supervisors Unit at the Buayan District, it was stated that the principal of SD Negeri 2 Mergosono have made a contribution to SD Negeri 2 Mergosono during his two years of service as principal. It is proven by the school achievement as the third rank out of 33 schools as a result of the supervision carried out in Buayan sub-district.This research is a qualitative research conducted through descriptive methods. The validity test was carried out using data triangulation. The technique in data collection used observation, interviews, and documents. Triangulation testing is done by involving source triangulation and triangulation technique. The results showed that the leadership role of principal in improving teachers' performance at SD Negeri 2 Mergosono has been well carried out. It can be seen that the role of the principal is very important to improve teachers' performance. The leadership role practiced by the principal is by giving motivation, disciplinary guidance, providing consultation, building active and creative working relationships, showing exemplary attitudes and good behavior, developing teacher professionals, conducting class visits, giving awards. While there are some factors that inhibit the principals performance. Those factors are the absence of good communication among school members, disciplinary factors, personality, and pedagogical competence. Therefore, it is suggested that the principals be competent to do the supervision so that teacher performance is getting better. The supporting factor for school leadership is the existence of communication among members of the community at the school and institutions related to the school and also the exemplary attitude shown by the principal.