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This paper reports on findings from research carried out in Portugal aimed at examining the ways in which recent policy on Teacher Performance Appraisal has been put into place as well as its effects on schools and teachers. In this paper, principals’ views are presented. A voluntary questionnaire was e-mailed to school principals throughout the country. By and large, principals believe that evaluation’s goal is improvement; however they also acknowledge that there are a number of features that need to be improved if teacher appraisal is to be successful. Issues such as the quality of feedback and supervision, the role of school leadership, the relationship between appraisers and appraisees are some of the critical areas.