This study examines the effect of school principals' empowering leadership according to teachers' perceptions of teachers' psychological ownership and work engagement. The study sample consists of 463 teachers. The relational survey model, one of the quantitative research methods, was used in the study. Empowering Leadership Scale, Psychological Ownership Scale and Work Engagement Scale were used to collect the data. As a result of the research, according to teachers' perceptions, the empowering leadership levels of school principals and teachers' psychological ownership and work engagement levels were found to be high. Teachers' psychological ownership and work engagement levels show significant differences according to age, seniority, and education level variables. A significant positive relationship was found between the empowering leadership of school principals and teachers' psychological ownership. A medium-level positive significant relationship was found between the empowering leadership of school principals and teachers' work engagement. Empowering leadership characteristics of school principals significantly positively affect teachers' psychological ownership and work engagement. The study emphasized the role of empowering leadership in understanding teachers' work engagement and psychological ownership. Based on the results, school principals are recommended to demonstrate empowerment leadership behaviors to build an understanding of teachers' work engagement and psychological ownership.