Purpose: Most education systems were not initially designed to include students with disabilities. However, over the past 25 years, great strives have been taken to ensure students with disabilities have access to the general education classroom and to important social, emotional and academic opportunities. Within the USA, researchers have begun to focus on the principal's role in creating and sustaining effective inclusive schools. The purpose of this article is to examine the leadership practices and perceptions associated with creating effective inclusive schools for students with disabilities. Design/methodology/approach: This qualitative study examined how two elementary school principals created an effective inclusive school and how they understood the challenges and change processes associated with inclusion. Each principal was interviewed and observed four times over one school year. Teachers and district administrators were also interviewed to gain insights into the school's progress with inclusion and to verify principals' interview data. Findings: This study added to existing research by identifying the following leadership practices critical to creating effective inclusive schools: (1) creating a culture of change-oriented collaboration, (2) planning and evaluating, (3) building capacity and (4) developing/revising plans. The principals felt that these practices enabled inclusion to take root, despite challenges and the chaotic nature of life in schools. A total of three additional themes emerged related to how principals understood change processes and challenges associated with inclusion: collaborative inquiry, information flow and crises/distractions/fatigue. Practical implications: Several key leadership practices were identified in this study, including practices associated to systems thinking (ST). These practices hold promise and might be applied to thoughtfully design inclusive reforms. Faculty in principal preparation programs might also consider exposing aspiring leaders to the literature on leadership for effective inclusive schools as well as systems thinking. Originality/value: The paper identifies the leadership practices of two principals who created effective inclusive schools. The paper is unique as it applies a ST lens to the investigation of leadership for inclusion.