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This policy analysis examines the latest teacher education policy implemented in Chile. I analyze official policy documents and participant reactions to answer the question of how the problem of teacher education is framed, what theories of change underlie this policy, and what effects this reform has on teacher education and professionalism. My analysis reveals that in this policy the problem is constructed as the unequal distribution of quality teachers, and low quality, unregulated programs. The reform strategies implemented promoted regulation and competition amongst universities. These strategies narrow programs’ curriculum and the definition of good teaching, diminishing both teacher educators and student teachers’ professionalism. These results are relevant to teacher education policies in other contexts, which combine regulation and market strategies.