Purpose: The paper aims to clarify the mediating effect of spirituality on the relationship between principal leadership and pre-service teacher efficacy in open and distance learning (ODL) environments. The issue of leadership weaknesses in school management remains a pertinent area of exploration. Design/methodology/approach: This study employed a quantitative methodology, collecting data from 300 pre-service teachers engaged in ODL settings in Penang. The data were analysed using partial least squares-structural equation modelling (PLS-SEM) with Smart PLS software version 3.3.3 to evaluate the hypotheses. Findings: The results show that principal leadership has a positive and significant influence on spirituality. Additionally, the findings indicate that the three dimensions of spirituality meaningful work, a sense of community and alignment with organisational values also significantly influence principal leadership. Furthermore, the results show that spirituality has a positive and significant influence on teacher efficacy. Research limitations/implications: The field of research, education and leadership in private preschools can benefit from the findings of this study. However, the study is limited by its focus on private preschools within Penang, restricting the generalisability of the findings to other contexts. Additionally, relying solely on a quantitative research method may not capture the full range of administrative styles adopted by leaders in these settings. Practical implications: This research highlights the importance of leadership in early childhood education, offering insights for private preschool management and the Ministry of Education. It examines the relationship between principals' leadership styles, self-efficacy and spirituality, which influence teacher effectiveness. The study underscores the need for strong support in teacher training and professional development, particularly for pre-service teachers in ODL programmes. Continuous qualification upgrades are essential for ODL teachers to balance learning and teaching. Effective leadership significantly impacts preschool teachers, who must manage teaching, administration and student needs, emphasising the role of leadership in fostering quality education. Social implications: This study highlights the social implications of transformational leadership in early childhood education, emphasising its impact on teacher effectiveness and spirituality. Using Bandura's social cognitive theory, it explores how leadership styles shape self-perceptions and behaviours within a social environment. The findings suggest that principals play a crucial role in fostering a supportive culture, aligning with Goetz et al. (2021). By prioritizing social sensitivity, preschool leaders can enhance teacher guidance and minimize conflicts. Additionally, the study contributes to Malaysian preschool literature, revealing that teachers' work experience indirectly influences their perceptions of leadership effectiveness and spiritual orientation. Originality/value: This study provides valuable insights and reference sources for early childhood education administration and leadership, particularly within the context of ODL. It highlights the importance of spirituality as a mediator in enhancing teacher efficacy in supportive leadership environments.