Educating literacy educators in online teacher preparation programs is an area in need of research. As online literacy teacher programs become more prevalent, it will become increasingly important to study the benefits and challenges of various online literacy clinic designs. This study investigated the perceived interactions between tutors and external coaches in online practicum courses to identify what kind of learning impact the presence of coaches might have on future literacy educators. Grounded theory analysis of tutor and coach interviews and tutor course reflections, supplemented with field observations, highlights three distinctive features of perceived benefits of coaching involved: (a) improved reflection and achievement; (b) better collaboration; and (c) being present in the joint activity. The findings also call for more collaboration between online literacy educator preparation and instructional technology coaches and programs.