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This question is about principal engineer.
Yes, "principal" is higher than "senior" for engineers. A principal engineer is paid more, and it takes longer to achieve compared to a senior role. Other differences include the scope of responsibilities specific to each position.
Both types of engineers are leaders, but senior engineers often manage one project or department, whereas principal engineers tend to manage larger groups of engineers across labs and projects.
Overall, senior engineers are often more technical and focused on creating innovative solutions within their projects. Principal engineers, on the other hand, research and recommend developments in the field. They may observe engineering teams and projects, for example, to determine new theories and policies that engineers across the field can use and learn from.
There are also differences in who they report to. Senior engineers, for example, typically report directly to leadership within their department. Principal engineers, on the other hand, report to senior leadership at a company.
The hierarchy of engineering positions:
Staff engineer
Senior engineer
Principal engineer
Distinguished engineer
Fellow
You can also distinguish between a senior engineer and a principal engineer by the required qualifications and skills for each position. While both roles require a sound technical background, principal engineers often need more extensive experience and a higher level of expertise. Ultimately, they need to be able to make strategic decisions that can impact the direction of engineering projects on a larger scale.
On the other hand, senior engineers are typically specialists who can apply their knowledge and skills to innovate and solve complex problems within their projects. Although they are highly skilled professionals, their scope of influence is generally more limited than principal engineers.
The career progression from senior engineer to principal engineer entails more responsibility. This involves overseeing more significant projects, mentoring junior engineers, influencing strategic planning, and sometimes even making business decisions. Because of this, becoming a principal engineer is not just about technical prowess but also leadership abilities and strategic thinking.

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