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This study critically explores the dynamics of Islamic-based school leadership within the unique context of Indonesia. It addresses a significant gap in the growing body of school leadership literature by exploring how religious beliefs and values influence leadership experiences and practices in Indonesian Islamic schools. This study engaged with 25 Islamic school leaders through semi-structured interviews. The analytical approach melds some features of thematic analysis with grounded theory techniques to deeply engage with leaders’ beliefs and values without being constrained by pre-existing theoretical frameworks. The findings culminate in developing a new theoretical framework that differs from conventional secular leadership models, which generally highlight individual leader attributes. This framework is grounded in an Islamic and Indonesian cultural ethos.