The effectiveness of educational leadership is crucial for sustaining teacher performance, yet evidence on servant leadership in Islamic educational institutions remains limited. This study examines how a madrasah principal implements servant leadership to support teacher performance at MTsN Kota Binjai, Indonesia, including its supporting conditions, challenges, and resolution strategies. Using a descriptive qualitative case study, data were collected from 15 purposively selected participants through participatory observation, semi-structured interviews, and institutional documentation. The findings reveal four interconnected practices: altruistic calling through responsiveness to teachers’ professional needs; community building through collaborative interaction; empowerment through delegation and professional autonomy; and persuasion through humanistic alignment with the madrasah vision. A familial organizational culture, transparent financial governance, and technology-adaptive younger teachers supported implementation. Key challenges included role disorientation among some senior teachers, possible misinterpretation of humanistic leadership as disciplinary leniency, bureaucratic constraints, and limited time for individualized interaction. The principal addressed these challenges through cross-generational peer mentoring, informal communication forums, tactical funding, and progressive discipline combining counseling with accountability. The study shows that servant leadership is most sustainable when empowerment is balanced with structured support, transparent resource management, and clear professional boundaries.