It is a well-known fact that a teacher is a nation builder and a real maker of history. An effective teacher is the greatest asset of an educational system and good educational system is the only hope of all developing nation like ours. The quality of education and standards of achievement is interrelated with the quality of teachers. Teachers‟ level of selfefficacy is believed to be strongly linked to teacher effectiveness, adjustment and student learning outcome. In this paper an attempt has made to study differences in adjustment of prospective teachers with respect to the level of self-efficacy. A sample of 700 prospective teachers was taken for conducting this study. It has been found that prospective teachers having high as well as average level of self-efficacy have almost equal adjustment while prospective teachers having high self-efficacy differ from prospective teachers having low self-efficacy. Likewise, prospective teachers having average level of self-efficacy found to have better adjustment as compared to prospective teachers having low self-efficacy. Further, suggestions are also made in this paper.