Competency-based education is among the most crucial topics in primary and secondary education reform. It transforms the conventional framework of curriculum, instruction, and assessment into one in which students must demonstrate that they have learned the knowledge, skills, and attitudes required to adapt to contemporary and future society. In response to the competency-based education trend, a new teacher education policy is necessary for both preservice and in-service teachers. Therefore, competency-based teacher education may well be one of major transitional forces reshaping Taiwan’s professional teacher-training programs. The present study investigated the connotation and practice of competency-based teacher education. Semistructured interviews were used to collect data on the value, connotation, possible construction, and potential difficulties of competency-based teacher education, and to elicit suggestions for its implementation. On the basis of analysis and discussion of the results, the following conclusions were drawn: (1) Competency-based teacher education guides the development of professional training programs; (2) Competency-based teacher education includes three dimensions: knowledge and skills, affection and attitude, and beliefs and values; (3) Difficulties in promoting competency-based teacher education derive principally from the lack of consensus on the concept of competencies and insufficient responses from teacher-training institutions; and (4) Practical strategies for competency-based teacher education require the cooperation of teacher-training institutions, improvement of primary and secondary school teachers’ capacities, active planning, and implementation and evaluation by educational authorities.