Teachers spend most of their time in school in classrooms, and their instruction and teaching practices may be affected by classroom context such as class size. We examine whether teacher effects interact with classroom context such as class size. Specifically, we seek to determine whether teacher effects are more pronounced in small classes than in regular size classes in early grades. The results point to some evidence that teacher effects are more variable in small classes than in regular size classes. However, the pattern does not seem to be systematic.