After identifying the aspects of classroom life that school restructuring might influence, this paper summarizes findings on school principals' perceptions concerning the potential effects of fundamental school reform. Because so little is known about principals' views on restructuring, an exploratory study employing qualitative methodology (indepth interviewing of a small sample) was used. Participants included 15 principals (2 women and 13 men) from public schools in New York, Illinois, and Tennessee. Findings were organized around the major areas of inquiry: conceptions of restructuring; potential impact of restructuring; prerequisites for successful implementation; and changes at the classroom and school levels. Generally, observed differences in principals' responses did not conform to patterns related to schooling level, geographic location, district context, or years of administrative experience. Principals felt that restructuring would have its greatest impact on the teacher's role. For themselves, principals forecast fewer decisions to be made by themselves, leading to a loss of power. Most principals felt that students would remain largely untouched by restructuring efforts. Principals' perspectives on radical change, restructuring goals, performance accountability, and curriculum and instruction are also discussed. Although the principals as a group were fairly supportive of restructuring, their beliefs emphasize the myriad difficulties associated with fundamental reform and its implementation. (34 references) (MLH)