This study aims to determine the effect of compensation and work environment on teacher performance at MI Assa’adatuddarain I Pamulang. The research employed a quantitative approach with an associative method. The population consisted of 40 teachers, and the sampling technique used was saturated sampling, meaning the entire population was used as the sample. Data were collected using a closed-ended questionnaire with a Likert scale, which had been previously tested for validity and reliability. Data analysis was conducted using multiple linear regression, including partial tests (t-tests), simultaneous tests (F-tests), and classical assumption tests. The results showed that partially, compensation did not have a significant effect on teacher performance, with a significance value of 0.860 (> 0.05). Meanwhile, the work environment had a significant effect on teacher performance, with a significance value of 0.003 (< 0.05). Simultaneously, compensation and the work environment together had a significant effect on teacher performance, with a significance value of 0.001 (< 0.05). The implication of this research highlights the importance of creating a supportive work environment as a strategy for improving teacher performance. These findings can serve as a basis for education management policy-making that focuses on the comprehensive development of human resources.