This paper argues that the implications of the concept of situated learning are important when developing a curriculum for initial teacher education (ITE). It describes and analyses the use of a model of ITE designed to stimulate discussions promoting the development of professional craft knowledge situated mainly in schools and to connect these with a wider research-based understanding of educational issues situated mainly in the context of university departments. Findings from a study of trainee teachers following a one-year postgraduate ITE programme based on this model indicate that it did help trainees to develop professional craft knowledge. However, socio-cultural differences between the school and university contexts made it difficult for trainees to translate ideas introduced in the university into their school-based practice. The implications of these findings for developing the model and for ITE in general are discussed. (Contains 2 tables, 1 figure, and 1 note.)