Physical education teacher education is a time when preservice teachers can reinforce their physical literacy (PL). Professional coursework within the teacher preparation program should also develop their teaching efficacy. In this regard, the purpose of this study was to examine the predictive relationship between preservice physical education teachers' perceived PL and teaching efficacy. The findings revealed that the PL dimension of self-expression and communication with others was the most significant predictor of teaching efficacy in developing content knowledge, applying scientific knowledge to teaching, teaching students with special needs, and using technology. Furthermore, preservice teachers' knowledge and understanding of PL predicted their teaching efficacy in accommodating skill level differences within instruction. These predictive relationships suggest that preservice teachers' PL influences their efficacy to enact effective teaching behaviors and should remain an ongoing priority of physical education teacher preparation programming suggested by the United Nations Educational, Scientific and Cultural Organization.