With the democratization in schools, the old-fashioned leadership of top-down chain of command from principals has turned into partnership. Therefore, the non-directive coaching leadership is a great fit for school settings. Distinguished from other leadership models, coaching leadership focuses on the growth of competence of subordinates and enhancing problem solving abilities. Furthermore, the bottom-up coaching leadership is also different from the top-down mentor leadership and is able to stimulate the subordinates' potential even more. Based on the above discussion, firstly this article is aimed to explore the meaning of principal coaching leadership, which is defined as the process of principals assisting subordinates develop their potential to achieve educational goals with non-directive methods through establishing trusting relationship, and utilizing coaching techniques, such as listening, questioning, and feedback. Secondly, this article analyzes the differences between the traditional leadership, mentor, and coaching leadership, followed by the description of the process and model of coaching leadership. Next, this article demonstrates and analyzes the application of coaching leadership and finally reflects principal coaching leadership to provide references for leaders in elementary and junior high schools.