<p>Compassion fatigue, a psychological burden arising from sustained empathetic engagement, significantly impacts teachers, particularly those working with trauma-affected students. This study investigates how Australian teachers experience and navigate compassion fatigue through the lens of compassion fatigue theory and Bronfenbrenner’s ecological systems theory. Using qualitative data from 57 educators via an online questionnaire, the study explores the interplay of emotional, cognitive, and systemic factors influencing compassion fatigue. Thematic analysis revealed four key themes: emotional and cognitive challenges, systemic and institutional demands, personal resilience and professional satisfaction, and balancing personal and professional life. Findings underscore that compassion fatigue extends beyond individual emotional struggles to include systemic pressures, such as excessive workloads, inadequate institutional support, and the undervaluation of teachers’ emotional labour. Practical recommendations include fostering supportive school environments, embedding trauma-informed resources, and promoting work-life balance to enhance teacher resilience and well-being. This research highlights the need for multi-level interventions to address compassion fatigue and ensure sustainable educational practices, providing a foundation for future policy and practice reforms.</p>