Studies of learning transfer within the paradigm of cognitive psychology suggest that transfer of learning from one task to another occurs rarely. Within a situated learning paradigm the idea of learning transfer can become even more problematic. Courses of initial teacher education comprise school-based and higher education institution (HEI)-based components. Within a situated learning paradigm it is not clear how easily learning that takes place in the HEI transfers to enhance performance in the school setting. Given the problems of learning transfer and the strengths of situated learning approaches, does the HEI-based component play any role in developing performance in the school? This paper considers the role of the HEI-based component of Post Graduate Certificate of Education (PGCE) courses in developing the classroom practice of students, the conditions that assist in the transfer of situated learning and some of the implications of these for the design and practices of PGCE courses. (Contains 6 figures.)