Peer coaching has recently been incorporated into teacher education programs to assist novice teachers in learning theory and incorporating teaching skills, models, and methods into classroom settings. Although recent research on peer coaching in preservice teacher (PT) education has identified an increase in reflective practice, few researchers have examined how teacher knowledge develops within the coaching experience. The purpose of this study was to describe the kinds of knowledge PTs exhibited during coaching activities, and how the roles of “teacher” and “coach” contributed to knowledge development during an elementary physical education field-based methods course. Eight PTs enrolled in a semester long required methods course volunteered to participate in this qualitative study, and were trained in an adaptation of the McAllister and Neubert (1995) model of peer coaching developed specifically for preservice teachers. Participants were paired with a coaching partner and each taught eight lessons, thus acting as teacher eight times and coach eight times. Coaching experiences involved the cycle of pre-conference, observation, and post-lesson conference. Data collection included written daily reports and audio-taped coaching observations and post-lesson conferences. Cochran, DeRuiter, and King’s (1993) model of pedagogical content knowing (PCKg) identifying knowledge development for preservice teachers provided guidance for data analysis. In this model, development of PCKg is viewed as simultaneous integration of four knowledge components: students, pedagogy, environmental context, and subject matter. After data were transcribed categories and themes were developed by means of constant comparison. Results revealed that the roles of “teacher” and “coach” were complimentary in their contribution to the development of PCKg. The teacher began the semester by focusing predominantly on the social behaviors of the children, whereas from the initial lessons the coach as observer was able to move beyond management concerns to focus on the students’ motor skills and contextual factors. PCKg resulted initially from the integration of two knowledge components (i.e., students and pedagogy), and later from integration of additional components (i.e., subject matter and environmental context). The professor’s goals for the course, class management, impacted knowledge development in that pedagogical concerns provided the basis of post-lesson conferences at the beginning of the field experience. Once the PTs had developed classroom management, at approximately mid-semester, they then paid more attention to the motor skill behaviors of the children. Further research should examine how PTs’ knowledge develops in peer coaching experiences within programs that focus on other aspects of a teacher’s knowledge base.Keyword(s): college level issues, professional development, professional preparation