The influence of students' self-efficacy (perceived capabilities) on their motivation and skill acquisition is discussed, focusing on the role of classroom models. Social-cognitive learning theory suggests that observations of peers performing academic tasks may affect the learners' efficacy partly through the intervening influence of perceived similarity in competence, and that student capability differences may influence perceived similarity. Research is summarized showing that students with skill deficiencies judge themselves more similar in competence to coping models than to mastery models, and that observing coping models enhances their self-efficacy and skills to a greater extent than does observing mastery models. In contrast, normal achievers judge themselves more competent than coping models (peers) who verbalize negative beliefs and equal in competence to mastery models and to coping models who do not verbalize negative beliefs. Future research might investigate familial influences on students' receptiveness to contextual factors, underminers of perceived efficacy, and developmental changes in ability to learn from models. (Author/SLD)