This study examined the nature of preschool teachers' self-efficacy, and the relationships among specific dimensions of teacher self-efficacy, teacher-child interactions, and preschoolers' academic and social adjustment. Teachers (n = 49) completed a survey and were observed in the classroom. Exploratory factor analysis indicated that preschool teachers' self-efficacy was best represented by three factors: classroom management, instructional engagement, and managing peer relations. Teachers felt less efficacious about classroom management compared to instructional engagement. Teachers' self-efficacy for classroom management was positively associated with observed emotional support and classroom organization, as well as with student engagement. Teachers' self-efficacy for instructional engagement was positively associated with students' emotional regulation. Moderate associations between student outcomes and dimensions of teacher-child interactions were also observed.