The Scottish Chartered Teacher Scheme was designed to recognise and reward teachers who attained high standards of practice. The scheme emerged in 2001 as part of an agreement between government, local employing authorities and teacher organisations. Policies such as the chartered teacher scheme aim to benefit students in two main ways: by attracting and retaining effective teachers; and by ensuring all teachers continue to engage in effective modes of professional learning. This paper reviews the Scottish scheme in the light of international interest in policies designed to promote teacher quality. Key features of the Scottish Chartered Teacher Scheme are identified and future challenges. The latter include the need to: strengthen the role of the profession in operational aspects of the scheme; ensure the scheme is based on a valid and reliable assessment of classroom performance; mainstream the scheme; and integrate the scheme with changing conceptions of effective school leadership. (Contains 1 figure and 1 note.)