This study examined awareness of equivalence and relational thinking exhibited by 30 preservice elementary teachers in order to assess their initial preparedness to engage students in these two important aspects of early algebraic reasoning. Findings indicated that preservice teachers collectively demonstrated an awareness of relational thinking both in identifying opportunities offered by tasks to engage students in this thinking and in identifying this thinking in samples of student work. However, in proposing difficulties students might have with selected tasks, few participants demonstrated the understanding that many elementary school students hold misconceptions about the meaning of the equal sign. Implications of these findings for preservice and inservice teacher education are discussed.