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We investigate whether intrinsic and extrinsic teacher motivation is related to students’ achievement and if this relation is mediated by instructional quality. Some researchers have looked at this subject (e.g., Kunter et al., 2013). They argue that intrinsically motivated teachers spent more time on occupation-specific tasks and invest higher effort in further development. Both seems to contribute to higher instructional quality. However, the current debate centers on the effects of intrinsic teacher motivation, thereby neglecting the role of extrinsic teacher motivation. We therefore focus on the estimation of indirect effects of both, intrinsic and extrinsic teacher motivation on students’ academic achievement. Our results show that instructional quality plays a central mediating role when predicting students’ academic achievement from teacher motivation.