This paper adopts a qualitative approach to study the perceptions of six secondary teachers from two schools with a similar background and history of school-based management (SBM). The study aims to explore the views of the teachers in the following areas: changes in school administration and the structure of the school under SBM; changes in the role of teachers and the activities of the Parent-Teacher Associations; the challenges facing principals; and teachers' worries and concerns under SBM. The study is significant as it supplements the limited number of researches on the roles of teachers and principals under SBM in Hong Kong. As serving teachers now play increasingly important roles in schools and work closely with their principals in administrative and educational matters, they can provide invaluable insights into the new era of change.