Homosexuality was removed from the American Psychiatric Association's list of mental disorders in 1973. Though awareness has increased, and attitudes have changed over time, negative incidents continue to occur in therapy involving lesbian or gay clients. This study examined the differences in counseling psychology graduate students' perceived level of efficacy in counseling lesbian and gay clients based on students' success experiences with lesbians and gay men, knowledge about homosexuality, and attitudes toward homosexuality. Participants in the study (125 masters and doctoral level students) responded to questions in four self-ranking scales, an index, and a demographic survey. Tables illustrate correlations in the findings, t-test results, and hierarchical multiple regression analysis. Results indicated that students who scored higher on success experiences with lesbians and gay men and lower on homophobic attitudes felt more efficacious counseling this population. Results of a hierarchical multiple regression indicated that experience and attitudes contribute to the prediction of counseling lesbians and gay clients self-efficacy beliefs. Counselors should be trained to assess and develop appropriate self-efficacy beliefs in order to ensure that the historical provision of inadequate therapy to lesbians and gay men will be replaced with quality interventions leading to positive therapeutic outcomes. (LSR)