The study explores the factors shaping the morale of university-level EFL teachers in Libya, employing a mixed-methods approach to provide a comprehensive analysis of both personal motivations and external influences. Results indicate that while teachers demonstrate high intrinsic motivation and confidence in their professional abilities, external challenges—such as inadequate compensation, limited institutional support, and low levels of student engagement—significantly erode morale. Teacher-student dynamics emerge as a crucial factor, with teacher morale notably higher when students are engaged and responsive. Based on these findings, the study offers recommendations for policymakers and educational leaders, including the need to improve teacher compensation, strengthen institutional support, expand professional development opportunities, and actively promote student engagement. These targeted interventions are essential not only for sustaining teacher morale but also for enhancing the overall quality of education within Libya’s EFL context.