As four teacher educators teaching a course associated with state-mandated assessment of literacy subject matter knowledge and instructional practices, we conducted a self-study of our experiences. In this article, we describe how high-stakes assessment further compounds the problematic nature of teaching and learning literacy in coursework. We discuss challenges associated with curriculum, instruction, assessment, and the social milieu of the course, as well as the ways that we have dealt with these challenges. Implications for teacher educators are discussed, as we all must deal with important issues in this era of accountability.