Accompanying the growth in student diversity, the disproportional representation of culturally and linguistically diverse (CLD) students in special education categories has drawn the attention of researchers and educators. However, teachers often reported a lack of competence to work with CLD population with and without disabilities. The purpose of this review is to investigate the relationship between perceptions of teacher efficacy and special education referrals. This review reports on the literature to identify competencies, attitudes, beliefs, expectations, and behaviors that educators demonstrate in working with CLD students. This review reveals that teachers used a deficit thinking model while working with CLD students and their families. With the process of deficit thinking, the findings of this review suggest that it might further influence educators' referral decisions on diverse populations. Overall, there have been relatively few studies, which limits the ability to identify the relationship between the levels of teachers' multicultural competencies and their ability to impact the educational decision of CLD students. Implications of this review are described.