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There is continuing research on principals’ instructional leadership, but it seems little research to examine its relationships with psychological capital and their staff’s job performance. This study surveyed the relationship between principals’ instructional leadership and teachers’ job performance, with a focus on the mediating role of psychological capital using a sample of 400 primary school teachers and 100 principals in Tehran, the capital of Iran. The findings of this investigation revealed that principals' instructional leadership is positively related to the teacher's job performance. Moreover, a teacher's psychological capital has a positive effect on a teacher's job performance.