This report describes the outcomes of a study that examined teacher efficacy in order to generate an exploratory and explanatory theory of teacher efficacy in the context of four heterogeneous fifth and sixth grade classrooms. It investigated how the four elementary teachers identified as being efficacious described the relationships between personal teaching efficacy and teaching and learning. An initial interview, three days of classroom observation and a follow-up interview were conducted with each teacher. Constant comparative analysis was used to concurrently collect and analyze the data. Findings indicated that at the core of the relationship between teacher efficacy and teaching and learning was the teacher's need for continual integration of beliefs and practices. To achieve congruence between beliefs and practices, the efficacious teachers in the study engaged in a continual process of constructing meaning in two essential areas: the quality of teacher relationships (primarily teacher-student relationships) and the effectiveness of instructional practices. The process by which meaning was constructed included creating and sustaining a positive classroom climate, engaging in reflective practices, and continual development of self. The teachers' ongoing use of inquiry and feedback provided the critical link between what meaning was constructed and how meaning was constructed. Contains 20 references. (CR)