This study assessed the relationships of leader psychological capital with team performance, innovation, and organizational citizenship behavior (OCB), and examined whether team psychological capital mediated those relationships. Ninety four school leaders (principals) and their leadership teams (N = 550) participated in survey research. Structural equation modelling (SEM) revealed team performance, innovation, and OCB were positively associated with both leader and team psychological capital. However, no relationship was found between leader psychological capital and team psychological capital. This suggests that leader and team psychological capital are each independently related to team performance, innovation, and OCB. These findings support the positioning of psychological capital as an important resource for the optimal functioning of both leaders and teams, particularly in school environments.