More infants and toddlers are in early care and education settings at this time than ever before in history, making the study of these settings of critical importance. In the first three years of life, patterns for health, relationships, and physical and emotional well-being are established that have life-long consequences. Using the framework of Bronfenbrenner’s Bioecological Systems Theory (Bronfenbrenner & Morris, 2006), this study explored how teacher characteristics and teacher-child interactions associate with child outcomes. Consistent with the systems theory approach, foundational literature for the study was collected from various disciplines, including early childhood, child development, economics, organizational dynamics, parenting, psychology, school reform, and social work. The teacher characteristics of self-efficacy and motivation were assessed and analyzed to explore direct and indirect relationships that existed between these variables, teacher-child interactions, and child outcomes. Correlational and hierarchical linear modeling analyses were used. Results indicate significant positive correlations between feelings of self-efficacy and internal sources of motivation. Negative correlations existed between some observed indicators of quality and teacher reported efficacy. Further analyses suggested that teachers with higher levels of responsibility may feel less efficacious than their observed performance. The study contributes to a small but growing body of research about infant/toddler teachers and how their characteristics may impact the children and their classroom experiences in early care and education settings. Keywords: early care and education, quality, infant/toddler, teacher self-efficacy, motivations for teaching