Digital transformation has created new demands for educational leadership and teacher professionalism in madrasahs. This study aims to model and examine the relationship between digital leadership and teacher performance in madrasahs. A quantitative survey design was employed involving 78 teachers as respondents. Data were collected using a structured questionnaire measured on a five-point Likert scale and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The analysis focused on the relationship between digital leadership as an exogenous construct and teacher performance as an endogenous construct. The findings indicate a strong positive and statistically significant relationship between digital leadership and teacher performance, with a path coefficient of β = 0.955, t = 27.93, and p < 0.001. The model produced an R² value of 0.911, indicating a substantial contribution of digital leadership to teacher performance in the observed madrasah context. These findings suggest that digital leadership is not merely concerned with technological utilization but also involves establishing a digital vision, facilitating teacher adaptation, encouraging innovation, and creating an organizational environment that supports professional performance. The study supports previous research emphasizing the importance of digital leadership in educational transformation while extending the evidence to the specific context of madrasahs. The study contributes a contextualized model that positions teacher performance as an important outcome of digital leadership in Islamic educational institutions