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The paper examines how extrinsic emotion regulations of teachers by principals (e.g., reappraisal and suppression) mediate the relationships between the principals’ emotional manipulation attempts on teachers and the perception of the principal as a transformational leader. Using a random sample of 656 teachers from 69 Israeli primary schools, extrinsic emotion regulation was found to partially mediate the relationship between positive as well as negative emotional manipulations and transformational leadership. Results suggest that emotional interaction plays a significant role in determining the ways principals are perceived by teachers.