The California Mentor Teacher Program is one of many efforts to improve teacher supply and quality, provide professional support, and offer alternative motivators and reward systems. This paper explores teacher leadership issues offered by this program. Using data from a 1985 joint study of the mentor initiative (by California State Department of Education and Far West Labaoratory for Educational Research and Development), the analysis describes current program adaptations, stress points, and areas needing greater support. Findings show that (1) local program definitions vary enormously, (2) broad variations in mentoring control occur, and (3) most mentoring happens with experienced teachers working on curriculum and instruction. The program raises some individual and organizational stress points, including exemplary teacher status versus peer acceptance, unclear mentoring technology, and lack of effectiveness indicators ensuring the program's future. Increasing teachers' decision-making power and providing career advancement opportunities will require multiple sources of support. These include training and support to implement the program (mainly released time for teachers to work together), integration of mentor programs with other improvement initiatives, and planning to support teacher leadership and career development. Included are 3 tables and 28 references. (MLH)