The job satisfaction of higher education faculty can be affected by the kind of leadership style practiced by leaders of an institution. This study examined perceived principals' leadership styles related to faculty job satisfaction in Higher Theological Institutions of Addis Ababa (HTIAA), Ethiopia. Leadership style in this study was defined as transformational and transactional leadership. The research design for this study was quantitative. The population for this study was faculty members identified from 10 HTIAA. Questionnaires were mailed to 126 faculty members. Of them, 103 (81.7%) questionnaires were correctly completed and returned. The researcher used the Multifactor Leadership Questionnaire (MLQ), and the Mohrman-Cooke-Mohrman Job Satisfaction Scale (MCMJSS) to gather data. Descriptive and inferential statistics were used to analyze data. An independent samples t-test compared the mean scores of job satisfaction to determine whether or not there were significant differences in the mean scores of job satisfaction between faculty members who worked under two different leadership styles. The quantitative finding revealed that there was a statistically significant difference in the level of job satisfaction between those faculty members who worked under a transformational leadership style than those who worked under an undistinguished leadership style. Conclusions and recommendations for practice and further study were made. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]