Given the pivotal role of leadership in improving educational quality and the importance of cultural and organizational contexts in developing authentic leaders, this study aimed to identify the contexts, competencies, processes, and outcomes of authentic leadership development in Iran’s educational system. Employing a qualitative approach, the study used deductive thematic analysis based on data collected through semi-structured interviews with 20 educational experts, including university faculty members, senior educational administrators, and school principals. Participants were selected through purposive, criterion-based sampling. To ensure trustworthiness, strategies such as member checking, expert review, data triangulation, and intercoder agreement were applied. The analysis revealed four overarching themes: (1) contexts and prerequisites for authentic leadership development, (2) competencies and internal dimensions of authentic leadership, (3) developmental actions and processes, and (4) functions and outcomes of authentic leadership. Findings highlighted the significance of cultural and organizational conditions, self-awareness, ethical orientation, self-regulation, effective interpersonal interactions, practical training, continuous learning, participatory decision-making, organizational support, and educational technologies in fostering authentic leadership. The results further indicated that authentic leadership contributes to strengthening organizational culture, enhancing trust, improving professional interactions and collective performance, fostering motivation and continuous growth, and increasing stakeholder satisfaction. Overall, authentic leadership development in Iran’s educational system emerged as a contextual, interactive, and multidimensional process shaped by the interplay of individual, cultural, ethical, educational, and organizational factors. The findings provide insights for policymakers and educational leaders seeking to promote sustainable leadership development and organizational effectiveness within educational settings.