The aim of the study reported in this paper was to explore and enhance experienced school mathematics teachers' knowledge of students'thinking, as it is manifested in practice. Data were collected from records of classroom observations, interviews with participating teachers, and weekly teacher-researcher meetings organized in the school. In this paper, we discuss the mathematical challenges faced by a primary school teacher as she attempts to unpack the structure of the division algorithm, while teaching in a Grade 4 classroom. Through this case study, we exemplify how a focus on mathematical knowledge for teaching 'in situ' helped in triggering a change in the teacher's well-formed knowledge and beliefs about the teaching and learning of the division algorithm, and related students' capabilities. We argue that in the context of educational reform, an analysis of knowledge demands placed on the teacher helps in understanding and supporting teachers' work.