The leadership of the university teacher has the most important role in the development of the educational institution and society. Universities are facing rapid societal changes and the need for innovative pedagogical approaches, including the potential for faculty members to emerge as leaders both within and beyond their classrooms, becomes increasingly salient. Teacher leadership in this context represents a collaborative ethos, where educators engage in shared decision making, curriculum development, and pedagogical innovation, thereby enhancing both academic and institutional outcomes. University teachers play a crucial role in achieving the 4th Sustainable Development Goal by leveraging their leadership skills to provide inclusive, equitable, and high-quality education. Teacher leadership and student satisfaction are considered to be interconnected but, in turn, teacher leadership is influenced by teacher disposition. The intricate interplay between professor leadership and student satisfaction within higher education institutions (HEIs) reveals significant implications for both faculty and student experiences. This study investigated two aspects: firstly, the effect of teacher dispositions, especially motivation, communication, conscientiousness, teacher efficacy and willingness to learn, teacher leadership, and secondly, how teacher leadership affects student learning satisfaction. A survey was developed using questionnaire structural equation analysis using SmartPLS 4.0. Three hundred eighty-nine students studying in public universities in Mongolia participated in the survey. The research results show that teacher dispositions such as motivation, communication, and conscientiousness positively affect teacher leadership. In addition, it was proven that teacher leadership positively affects student learning satisfaction.