The aim of this research is to find out whether given compensation and teaching environment correlate with teaching performance. The method of this research is Survey Study. Hypothesis proposed: 1) There is a correlation between given compensation (x1) and teaching performance. 2) There is a correlation between teaching environment (x2) and teaching performance. 3) There is correlation between given compensation and teaching environment simultaneously and teaching performance (Y). Respondents of this research are 32 teachers and headmasters of Madrasah Aliyah Al-Falah, the technique used for collecting data are questionnaire, observation, and interview, in the form of three instruments: Compensation, Teaching Environment, and Teaching Performance. The instrument were analyzed by validity and reliability test. Item validity were counted by using Product Moment Correlation Coefficient. The instrument coefficient reliability were counted by using Alpha Cronbach. The data pre-requisite analysis for population normality test, were analyzed by using Kolmogorov - Smirnov and Shapiro Wilk formula. The data were analyzed by using simple correlation, simple linear, and multiple regression. The result of the research shows first, there is a positive correlation between given compensation (x1) and teaching performance (Y), with coefficient correlation ry1=0.328 equation regression Y=59.1139 + 0.165x1. Second, there is a positive correlation between teaching environment (x2) and teaching performance (Y) with correlation coefficient ry2=0.738 means high correlation and equation regression Y=2.485 + 0.988x2. Third, there is a positive correlation between given compensation (x1) and teaching environment (x2) simultaneously and teaching performance (Y) with multiple coefficient correlation ry12=0.739 with equation regression of Y=2.963 + 1.259x1 + 0.99x2. Based on the result, the effort to increase the teaching performance of the teacher in Madrasah Aliyah Al-Falah should begin with good given compensation system and environment of teaching.