Review the books and references about leadership in the past, we can find that a lot of topics of leadership were discussing leadership from the dimension in skills traits. However, the theories of leadership pay much attention to interpersonal interaction, thus ”storytelling leadership” is booming. Principals in elementary and high schools may face all kinds of people, including teachers and students, people in society, councilors, therefore the skill in communication is very important. If a principal can utilize the power of telling stories, tell an appropriate story in correct place, he can produce profound impression, shorten the distance, and promote the administrative potency. The paper is to bring up the importance of telling stories, and then discuss the meaning of telling stories in leadership, the strategies of telling good stories, the application of principal's leadership, and I propose the conclusion finally. I hope the paper could provide several suggestions for educators and educational administration institutions.