Introduction Sustainable leadership has gained increasing attention as a long-term and value-based approach to improving school quality. However, the mechanisms through which it is associated with teacher performance remain insufficiently specified in the educational leadership literature. Prior research has often reported direct associations, offering limited empirical clarification of the psychological and behavioural processes underlying these effects. Methods To address this gap, the present study examines how sustainable leadership relates to teacher performance through two internal mechanisms: work engagement and innovative work behaviour. Using a quantitative explanatory survey design, data were collected from 225 elementary and secondary school teachers across Banten Province, Indonesia. The data were analysed using partial least squares structural equation modelling (PLS-SEM). Results The findings indicate that sustainable leadership is positively associated with teachers' work engagement and innovative work behaviour. Both mechanisms are significantly related to teacher performance. Additionally, the results show that the influence of sustainable leadership on performance operates indirectly through these motivational and behavioural pathways, rather than as a direct effect. Discussion By empirically clarifying the mediating roles of engagement and innovation within a single integrative model, this study refines existing sustainable leadership research and responds to calls for more mechanism-oriented explanations in educational settings. While the cross-sectional and self-reported nature of the data warrants cautious interpretation, the findings offer meaningful theoretical insight into how leadership practices are linked to teacher outcomes. The study also provides practical implications for school leaders and policymakers seeking to foster sustained engagement, innovation, and teaching effectiveness.