This study examines teachers' material development literacy, focusing on their perceptions and levels of knowledge. Using a survey model, data were collected from 123 teachers from different disciplines and educational levels. Two data collection tools were employed to assess perceptions and theoretical knowledge, respectively (the Scale of Material Development Literacy Perception for Teachers and the Instructional Material Development Knowledge Test). The results indicate that while teachers have high levels of perception regarding material development, their knowledge levels remain medium and unevenly distributed. No significant correlation was found between these dimensions, suggesting that perceptions may be influenced by factors such as motivation or self-efficacy rather than actual knowledge. Professional development programs, although widely implemented, were found to lack the practical focus necessary to bridge this gap. Teachers with specialized training demonstrated better alignment between knowledge and practice, highlighting the importance of targeted, hands-on professional development. This study underscores the need to integrate theory and practice in teacher education programs. These results provide avenues for refining teacher training and improving classroom outcomes.