In this paper, we explored how well prepared pre-service teacher candidates are to develop moral literacy. With the mandate in Ontario schools to deliver character education, we were intrigued by the question: How well prepared are teacher candidates to deliver on this requirement based on preservice preparation and the realities of classroom practice in public education? The issue of teacher preparation has been raised as a concern in moral and character education literature (Berkowitz & Bier, 2004; Nucci, Drill, Larson, & Browne, 2005). Based on this inquiry we have concluded that pre-service teachers are not well prepared to fulfill the moral literacy requirement of character education because they lack theoretical background knowledge in moral development. Further, we recognize that the in-service training of practicing teachers is of equal importance to ensure a receptive environment exists for pre-service teachers. The implication of this finding is that for preservice teachers to be equipped to meet Ministry character education expectations in practice, preservice programs will need to be improved, and practicing teachers will require ongoing professional learning opportunities that value moral literacy development as complimentary and equal to academic development.