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Empirical research considers teacher collaboration as an important predictor for outcome variables on students, teachers and school level. Since principals are responsible for creating teachers’ work environment, they might have the opportunity to strengthen teacher collaboration. On this account, the present study addresses the question––what relationship exists between principal leadership and teacher collaboration? Drawing on social interdependence theory, we hypothesize that teachers’ collective efficacy has a mediating effect on this relationship. Data were collected from 630 teachers in 29 primary and secondary schools from Germany. Structural equation modelling indicated that there was a significant indirect effect of principal leadership on teacher collaboration mediated by teachers’ collective efficacy. Hence, principals can support teacher collaboration by strengthening their collective efficacy.