While the use of situated cognition theory in teacher education programmes has the potential to teach prospective teachers, research on teacher knowledge and learning from a situated perspective has been slow to emerge in reference to prospective teacher education. In this paper, we present a situated case-based knowledge framework to explain the development of prospective teachers' knowledge and beliefs. The framework includes conceptual case knowledge, strategic case knowledge, and the shared identities and beliefs of practicing teachers. In addition, we summarize findings from a study wherein the situated case-based knowledge framework was applied to support prospective teachers' learning, as well as discuss implications for research and practice. (Contains 1 figure and 2 tables.)