The present study aimed to identify the actual Performance Evaluation System of the principals in the schools of General Education in the Sultanate of Oman and to determine if there were any statistically significant differences among respondents according to sex, position within the system, qualification, years of administrational experience, educational region and educational level. The final aim is to suggest some practical procedures in order to develop the PES. To achieve the above objectives, the educational literature related was analyzed, and a questionnaire of (56) statement was designed. The reliability and validity of the questionnaire were also tested. The statements were grouped into seven elements representing the PES. These were: objectives, criteria, conditions and descriptions of the criteria, models, methods, evaluators, and areas of benefit resulting from the evaluation process. The study sample was composed of: (257) individuals, representing the school principals of general education in the Sultanate of Oman, and (99) individuals, representing the school principals evaluators from all eleven regions in the Sultanate of Oman. In order to answer the questions of the study, the data gathered were statistically analyzed by applying the means, standard deviations, rank, T-test, one way ANOVA and Scheffe's test. The main findings of the field study were as follows: 1) The rating of participants on the seven elements of the Performance Evaluation System of principals in the schools of general education was: low, moderate and high. The element related to "criteria' scored the highest frequencies, whereas the element related to the 'models' was moderate and the remaining elements of the system scored the lowest frequencies. 2) With regard to the effect of the variables, the study revealed; . a. There were statistically significant differences (at the ai =0.05) among respondents that can be attributed to sex, position within the system and educational region. b. There were no statistically significant differences (at the a =0.05) among respondents that can be attributed to qualification, years of administrational experience and educational level. In the light of the literature analysis and the result of the field study, the present study provided a number of practical procedures representing the elements of the system in order to develop the PES in the Sultanate of Oman.