This study aims to investigate the effect of strategic leadership on organizational performance in institutions affiliated with Iraq's Ministry of Higher Education, emphasizing its role in complex and competitive environments. The research employed an applied, descriptive-correlational design using a field survey method. The statistical population consisted of 2,200 employees from institutions under the Iraqi Ministry of Higher Education. Based on Morgan’s table, 350 questionnaires were randomly distributed using standard tools: Lear et al.’s (2012) Strategic Leadership Questionnaire and Adam et al.’s (2022) Organizational Performance Questionnaire. Data were analyzed using SPSS and SmartPLS software through descriptive statistics, Cronbach’s alpha, confirmatory factor analysis, and structural equation modeling. The structural equation modeling revealed a significant positive direct effect of strategic leadership on organizational performance (β = 0.605, p < 0.001). The GOF index value was 0.626, indicating a good model fit. Additional fit indices such as CFI (0.946) and RMSEA (0.0198) confirmed the model’s adequacy. Pearson’s correlation also showed a strong positive relationship between strategic leadership and organizational performance (r = 0.802). Confidence intervals excluded zero, affirming the robustness of the estimated effect. Strategic leadership significantly enhances organizational performance within Iraqi higher education institutions. These findings underscore the need for leadership models that prioritize vision, ethical values, human capital development, and adaptability in dynamic educational environments.