The main purpose of the study is assessing the challenges and opportunities of female teachers’ participation in principal-ship position in Gondar Town primary schools. Specifically, this study addresses such specific objectives as explaining the challenges of female teachers’ participation in leadership, opportunities of female teachers’ participation in leadership and to assessing the society attitude towards female participation in leadership positions in Gondar Town primary schools. To achieve these objectives, a qualitative research approach was employed. In Gondar town, there were 43 government primary schools of which 10 were included in the study. As a result, 10 female principals and 30 female teachers as well as 2 education officials from the education office and other 2 from the gender affair office were purposely selected and included in the study. Thus, the sample size of the study was 44. Two major data gathering instruments were used. These were semi-structured interview and focus group discussions. A qualitative research approach was employed based on which results of the study were analyzed. Accordingly, the present study found that low female teacher principals in primary schools of Gondar town was attributed to a number of determinants that have been adversely affecting the participation of female teachers in school leadership. It was found that there were such challenges as lack of interest on the part of the female teachers themselves, age matters and household responsibilities, fear of work burden, responsibility and accountability, sector problem and a feeling of insecurity that can adversely affect female teachers to be a principal. Moreover, it was found that policies to encourage and enhance female teachers’ participation in school leadership were not properly handled and adequately implemented; and there were policy statements or guidelines that have frustrated female teachers to come to leadership/principal-ship positions. Furthermore, it was also generalized that there were no encouraging practices regarding implementation of affirmative actions. The current status of the education office in handling affirmative actions was characterized by lack of consideration, lack of interpretation, lack of familiarity, lack of planning and preparation and lack of accountability all of which caused for the underrepresentation female principals in primary schools of Gondar town. Besides, community attitude towards female leadership capacity attributed to the low participation of female teachers in principal-ship positions. Moreover, it is found in the study that existing opportunities like gender sensitive policies and affirmative actions were not exploited to raise female teachers’ awareness and build their capacity for leadership positions. Based on these results, the researcher concluded that there is a need to make a difference regarding attitudinal changes among the educational officials and government bodies in the locality, the community and teachers to enhance female teachers’ participation in the leadership positions of the primary schools.