This study investigates principals' perceptions of the effect of teacher empowerment on their role as building administrators. The researcher conducted structured interviews with 10 principals, 5 elementary and 5 secondary, in 2 school systems characterized by wider applications of shared decisionmaking and greater professional autonomy among teachers and administrators. Findings are discussed with respect to the principals' understandings of empowerment, the difference between these schools and more traditional schools, advantages and disadvantages of teacher empowerment, redefining the principal's role in teacher-empowered schools, changes in the principal's role, and teachers' expectations of principals in schools where teachers share in governance and decisionmaking. The conclusion discusses nine important themes that emerged from these interview data regarding teacher empowerment and the principalship: (1) the language of shared governance and empowerment; (2) readiness for professional growth and empowerment; (3) the importance of the superintendent's leadership in empowerment; (4) time as a key resource for empowerment; (5) boundary spanning for school principals; (6) enhancement of teachers' and principals' professional image; (7) the importance of hearing teachers' voices; (8) shared professional thinking; and (9) dealing with power through empowerment. References are included. (TE)