The main objective of this study was to examine elementary school head teachers’ leadership capacities as perceived by their teachers. Precisely, leadership capacities of head teachers were analyzed in six key areas of internal and external leadership related to ELCC (2002) standards. This study also examined differences in participants’ perceptions, when grouped by their demographic variables and internal-external division. This quantitative study applied survey design to achieve the objectives. A 28-items Principals’ Leadership Capacities Questionnaire (PLCQ), designed by Naijar (2006), was adapted and administered to randomly selected sample of 1115 teachers from 363 elementary schools in two districts of the Southern Punjab (Pakistan) and finally 876 (78.6%) responded. The factor analysis, descriptive statistics, and a range of inferential statistical tests were applied to analyze the data. Factor analysis (Principal Components Analysis) found that the leadership capacities of head teachers can be measured separately in the subsequent two dimensions i.e., internal leadership capacities and external leadership capacities. Findings of the descriptive statistics suggest that school teachers perceive their head teachers’ both internal and external leadership capacities as more positive than negative. Inferential analyses found that teachers perceive that their head teachers have significantly better external leadership capacities than internal ones, though both capacities are just above average. Likewise, significant differences were found in teachers’ views about their head teachers leadership capacities based on their various demographic variables. This study will inform the middle and top-level management in school education to design and organize capacity building programs for elementary school head teachers to develop their leadership capabilities.