This study captures the thoughts and perceptions of a group of Hong Kong principals on the transfer of sovereignty and its effects on education. The investigation addressed the following guiding research question: What, according to their perceptions, have been, and will be, the effects on education policy and on school-level management and curriculum, of the transfer of sovereignty? A qualitative approach was adopted, using naturalistic methods of inquiry. Nine principals of aided secondary schools were selected for interview according to procedures of purposive sampling. Findings indicate that, faced with uncertainty arising from the change of sovereignty, principals feel confident of managing and coping with situations at the school level in connection with curriculum and management. However, they express concern and greater uncertainty about their ability to manage changes emanating in the broader socio-political educational environment, especially in regard to values and norms and access and opportunity, all of which are likely to impact on their schools. Copyright © 1997 Carfax Publishing Ltd.