This ERIC digest discusses the theoretical basis of case teaching and examines its strengths and limitations as a tool for teacher education. Case teaching presents authentic, concrete teaching problems for students to analyze. The study of a classroom fight, for example, might draw discussion of racial, ethical, political, and other community issues, as students consider questions faced by teachers and administrators in such situations. The case method has long been used in professional training for business, law, and medicine, but has only recently been explored in the preparation of teachers. Case method teaching provides vicarious experience of a variety of concrete cases, sharpening students' understanding of the profession. It offers models of how to think professionally about problems, and enhances teachers' ability to learn from their own experiences. The case method also illuminates human exchanges that are often the core of teaching problems, increases students' repertoire of educational strategies, and helps students learn to spot issues early. Case method teaching is, however, not a systematic means of teaching, nor do cases give students actual practice in pedagogical skills. Some faculty find it hard to locate good case-teaching materials or fear that classes can degenerate into pointless exchanges of personal opinions. The document lists sources for cases and provides pointers on instruction. It encourages teacher educators to develop their own cases that fit into a particular educational context such as an ethnic community or a rural small school. The document also includes sources of Alaska cases developed by rural educators. (TES)