This research is based on the urgency of the principal's role as a strategic leader in encouraging improved teacher performance amidst increasingly high demands for quality education. Transformational leadership is considered an appropriate approach because it is oriented towards positive changes in teacher attitudes, motivation, and performance on an ongoing basis. However, in practice, there is still a gap between the ideal concept of transformational leadership and its implementation in the school environment. This study aims to examine the application of transformational leadership by principals in an effort to improve teacher performance, which includes the dimensions of idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Furthermore, this study also identifies various obstacles that arise and the solutions implemented to overcome them. The study used a qualitative approach with descriptive methods in two elementary schools with different characteristics as multi-site research locations. Data were collected through observation, in-depth interviews, and documentation studies to obtain a comprehensive picture. The results show that principals apply transformational leadership contextually by maximizing its four dimensions, resulting in improved teacher performance and the formation of a conducive and collaborative work culture. However, its implementation still faces several obstacles, such as limited understanding of the concept of transformational leadership, high administrative burdens, varying levels of teacher motivation, and limited supporting facilities. To overcome these challenges, principals implement adaptive strategies through strengthening leadership competencies, effective time management, developing a culture of collaboration, and optimizing available resources. Thus, adaptive and contextual transformational leadership has been shown to contribute significantly to improving teacher performance.