Particular ethical tensions and dilemmas emerge when conducting qualitative educational research. This is further compounded where the predominant approach to research ethics is underscored by a dominant principalism which construes ethical rules as both universal and absolute. This article focuses on the 'perfect ethical storm' which is arguably created when ethnographic design, covert observation and practitioner research collide. Drawing on a doctoral study into therapeutic education, this analysis shows how such research may be ethically feasible when the qualitative researcher adopts a more flexible approach to research ethics based on Aristotelian notions of virtue. In this article, I also demonstrate how the field diary can be a valuable tool in enabling the qualitative researcher to develop certain dispositions, notably reflexivity, which are central to becoming a virtuous researcher.