Schools in Hong Kong are now undergoing many educational reforms. With so many ideas and demanding tasks ahead, principals have been expected to bear the responsibility for implementing change. In 1991, the leadership of Hong Kong principals was described as “dictatorial” in a government document, which painted a bleak picture of the leadership being offered by Hong Kong principals at that time. However, this recent study showed that teachers perceived that principals as exerting some degree of transformational leadership in schools. All the eight dimensions of the leadership were above the mid-point on the rating scale. It seems that there is a shift in Hong Kong primary school principals leadership conceptions. This paper describes the extent to which teachers perceived their principal ’s to be exercising transformational leadership. Issues concerning principal development are discussed. Copyright © 2002 The Institute of Asia Pacific Education Development.