This article discusses research on teaching and learning values education in schools. It offers researchers and teachers an insight as to why values education should be incorporated in classroom teaching. It is suggested that values education, in addition to focusing on moral education, is connected to active citizenship education, social justice and human rights education. The list of core values in the Australian Curriculum and the importance of values education are discussed. Various curriculum and pedagogical suggestions are offered as to how to improve the effectiveness values education in classroom pedagogy. The article concludes that values education to be meaningful, engaging and authentic must involve a greater sense of community, more emphasis on cultural diversity, critical thinking and a deeper and critical understanding of democracy, equality, human rights and social justice for all.