This paper presents a study of teachers' perceptions of '21st century literacy' practices and the dilemmas teacher face when these perceptions clash with the policies and the practices they feel are expected of them. Using narrative inquiry as its methodology, the paper presents 3 themes identified within the study, namely: 'Teachers' insights into 21st century literacy, 'Teachers' perceptions of necessary 21st century literacy skills for Year 6 students' and 'Influences on teachers' literacy pedagogical decision-making and practice'. The narratives present two teachers' perceptions (and misperceptions) of 21st century literacy, their pedagogical approaches, and how various factors influence their work. The paper considers how various factors influence teachers' pedagogical practices, and highlights discrepancies between teachers' professional beliefs and their practices based on external classroom influences. Narrative offers an insider's view of how these discrepancies are lived out in two Victorian classrooms.