Purpose: The importance of teacher leadership in enhancing school outcomes is recognized, but there remains a scarcity of research addressing the conditions for principals to nurture such leadership. This study examined how school contextual factors, i.e. faculty trust and academic emphasis, moderate the impact of principals' distributed leadership lon teacher leadership. Design/methodology/approach: A nationwide survey was conducted among junior high school teachers in Taiwan. The sample encompassed schools from different geographical regions and sizes, yielding a total of 1,340 valid responses. Hierarchical regression analyses were employed to analyze the potential moderating effects of interest. Findings: There were interactive effects of principals' distributed leadership and school contextual factors on teachers' adoption of leadership roles. The impact of principals' distributed leadership on teacher leadership was amplified in environments marked by elevated levels of trust relations and reduced academic emphasis. Practical implications: This study uncovers the critical prerequisites principals must address to cultivate teacher leadership. To effectively encourage heightened teacher engagement in leadership, principals must place a premium on nurturing trusting relations with their teaching staff and acknowledge that the influence of their leadership might be lessened in an environment where credentialism holds sway. Originality/value: The exploration into faculty trust and academic emphasis yields insights into the conducive conditions for principals to foster teacher leadership. The identified attenuating impact of academic emphasis on principal effect within an Asian societal context highlights its significance not only as an organizational property but also as a manifestation of national cultural values.