The purpose of this study was to assess the practices and challenges of principals' leadership role in the implementation of SIP and to suggest possible solution so as to alleviate hindering factors that affect principal leadership role in secondary and preparatory school of East Gojjam Zone. To achieve this objective, a descriptive survey design was employed. Questionnaires with open ended and closed-ended items were distributed. The questionnaire was distributed to 287 participants but only 272 were collected back. Interview was conducted for 8 supervisors and 8 principals. Document analysis were also employed to collect data for the study. The collected data were analyzed by using both qualitative and quantitative method of data analysis. One sample , t-test was used for analyzing the status of principal leadership practice in the implementation of SIP. Interview, document analysis, and open-ended questionnaire data -were analyzed qualitatively using narration and direct quotation. By doing so, the result of this study revealed that school principals did not work with stakeholders as expected, -ey did not facilitate experience sharing within the school and scaling up of best practice to enhance professional development of teachers, they did not have sufficient skill and commitment to implement the SIP domains effectively. Moreover, the result of the study indicated that teachers, communities and other stakeholders were not initiated to work cooperatively among their colleagues and peers to exercise school improving duties and responsibilities, environmental challenge like insufficient resources and other facilities were major challenges affecting school principal leadership roles in the preparation and the implementation of SIP. Therefore, school principal leadership roles in the implementation of SIP were not effective. Based on the findings recommendations have been for warded. Wared education Offices in collaboration with Zone Education Offices and Regional Education Bureau should give sustainable technical assistance including training for school principal. They also provide financial and material supports in a better way. Moreover, school principals should have sufficient skill and commitment to plan and implement the SIP domains effectively.