The purpose of this paper is to introduce a theory of critical forgiveness, which we define as a cognitive choice or emotional change towards healing relationships after injustice has occurred, while considering the power and privilege of those involved. We suggest that critical forgiveness is especially applicable to research and practice in schools, where relationships are central, and for transformational leadership that seeks to right inequities. Critical forgiveness builds on both critical theory and cross-disciplinary research on forgiveness to offer an alternative framework for restoring justice. That restoration is essential for positive relationships in schools.