Cherie Rivero, of Pecket Well, Hebden Bridge, triggered a complaint after donning leathers and a crop top and appearing as sexy Columbian pop star Shakira.
Miss Rivero – an Ofsted inspector – has also appeared as Britney Spears and Debbie Harry.
She was embroiled in further controversy when a pupil discovered the part-time singer and actress's website, which featured a picture of her in a Panama hat and tight vest sticking her tongue out.
Miss Rivero told the Courier the situation was blown out of proportion by someone trying to make something out of nothing.
Now she has recorded a CD and wants to launch a singing career.
"The situation was twisted," said Miss Rivero. "No one ever even saw the photo that caused the trouble. I don't want to bring up the past."
It is alleged that after the claims, the head – who a year earlier auditioned for TV's The X Factor in a black PVC catsuit causing The Observer newspaper to dub her 'Miss Whiplash' – removed the picture from her website.
But parents sprang to her defence, calling her a dedicated and professional head teacher and saying she was one of the highlights of the school's yearly talent show.
Governors at Bamford Primary, Rochdale, where she has worked for the last nine years, also gave Miss Rivero their full backing.
Chairman Adrian Powell said Miss Rivero was an excellent head and the school needed her.
He said children saw more provocative things on television.
Miss Rivero, who started singing in 1994, recorded a demo CD at Calder Recordings in Mytholmroyd this summer and has recently featured on Radio Calderdale and Royal Radio Bradford.
The album mainly features ballads and easy-listening songs, including The Animals' House of the Rising Sun and the Barbra Streisand classic Wind Beneath My Wings.
Her rendition of My Heart Beats Like A Drum is currently ranked number three on an online easy-listening chart for unsigned acts.
Miss Rivero, who has performed with various charity bands over the years, said: "Everyone needs some kind of outlet outside their day job.
"Singing is very good because it gets me out and about and I really love it."

For more information or to listen to her songs, visit http://www.betarecords.com/openframeset.php?content=/cherie.rivero