Purpose: The objectives of this study are to: 1). Identify the types of principal leadership applied in high schools, 2). The application of creative leadership of school principals in modern Islamic boarding schools in empowering teacher performance in schools, 3). Fostering the creative leadership of school principals in modern Islamic boarding schools. Theoretical Framework: This study will explore how high school leaders in Muhammadiyah apply creative and transformative leadership principles to face contemporary challenges in education, such as adapting to new technologies, improving the quality of teaching, and promoting sustainable development values among students and staff. Methods: This research uses an interpretative paradigm with a qualitative approach, case study type, and multicase design. Data were collected using observation, interviews, and documentation. Data validity using triangulation of sources, methods, and theories. Next, an interactive model analysis is carried out. Obyek penelitian dilakukan di SMAM SBM Piyungan Yogyakarta dan SMAM Pondok Pesantren Modern Imam Cabang Syuhodo Muhammadiyah Blimbing, Sukoharjo, Jawa Tengah. Results and Conclusion: The results of this study show (1) Types of creative leadership in these two schools include being innovative, engaging in the community, providing opportunities for students to develop, and focusing on social and humanitarian contributions. (2) The application of principals' creative leadership in empowering teacher performance in schools is carried out by encouraging innovation in learning, providing support and training, recognizing and rewarding superior performance, developing joint learning plans, providing emotional support, facilitating teacher collaboration, implementing an equitable evaluation system, and integrating educational technology. Research implications: The implications of creative values applied in cottages, especially in terms of raising cottages, are proactive, advanced, inclusive, do not impose and do not prohibit, and even provide education to the community so that according to the direction of Islamic boarding schools that uphold Islamic teachings, can be implemented and applied. Originality/value: the originality of this research lies in pesantren which includes Islamic educational institutions with creative leadership that is not stagnant, and always runs and develops dynamically.