This qualitative study seeks to examine how value-based supervision can be integrated into educational leadership at the institutional level in Oman by exploring value-based supervisory practices, associated challenges, and leadership innovations within Omani educational settings. The research employed an interpretive qualitative approach using the Interpretative Phenomenological Analysis (IPA) method to understand the lived experiences of 63 purposefully selected leaders and educational supervisors operating at school and higher education institutional levels, including participants from the Ministry of Education, Omani universities, and development centers. Data were collected through semi-structured interviews that focused on representations of values in supervision, mechanisms for supporting ethical leadership, institutional and cultural challenges, and notable value-driven practices. The data were analyzed thematically following Braun and Clarke’s framework, using NVivo and applying established qualitative validity and reliability standards. The findings revealed that justice, transparency, compassion, respect, and responsibility constitute the core ethical pillars shaping value-based supervisory practices, while also influencing leadership innovations and responses to institutional challenges. The study also found that value-based supervision contributes to fostering an institutional culture grounded in trust, dialogue, and collaborative learning. The analysis further identified several obstacles hindering the institutionalization of value-based supervision, most notably the dominance of administrative procedural tasks, lack of specialized training, work pressures, and insufficient institutional support for ethical behavior. Conversely, the study highlighted innovative leadership practices such as reflective dialogue, the use of values as evaluative criteria, and the leader's ethical modeling. The study concludes that value-based supervision represents a fundamental avenue for strengthening educational leadership at the institutional level and recommends cultivating an institutional environment that integrates values into policies and professional practices.