The purpose of the qualitative study was to explore Physical Education Teacher Education (PETE) undergraduate students' perceptions about working with individuals with disabilities while performing Service Learning (SL) at two community-based sites. Using a grounded theory research design, data from field notes, supervisor evaluations, and focus groups were coded and analyzed to identify five themes of perceptions and level of competence: social emotional climate, prior preparation, delivery of instruction, career readiness, and developing leadership.