This study showed how narratives permeate teacher knowledge and are essential to understand teachers work and learning. It focuses on the characteristics of the teaching profession that are both revealed and constructed in the activity of conversation. The main interest of the study was to reveal new layers of meaning and to uncover interactional relationships involved in them. The study treated teachers pedagogical knowledge as a broad theoretical concept and as an extended practice. This type of knowledge is characterized as active processes by which teachers perform their duties in situations involving intense social interactions. The study, in which interviews were held with 29 elementary school teachers in Finland, provided a plausible and systematic account of how narrative knowledge construction works. It presents a concrete approach to analyze teachers narratives, providing step-by-step guidance to uncover and document meaningful patterns of transcribed narrative data. This relational account of pedagogical knowledge construction focuses on the personal, social, and cultural contexts in teachers working and learning environments. The approach enables teachers better to understand the endeavors in which they are involved. (Contains 1 figure, 2 tables, and 47 references.) (Author/SLD)