Raising the qualification level for preschool staff is often seen by policymakers as a means of improving the quality of preschool. However, research examining the relation between qualifications of preschool staff and preschool quality has given inconsistent results. This suggests that one’s competence as a teacher is not necessarily reflected by one’s level of teacher qualification. The aim of this study was to contribute to knowledge about preschool teacher competence and its relation to education and practice. This was accomplished through documenting and examining perspectives on preschool teacher competence from currently enrolled Swedish preschool teacher students and recently graduated Swedish preschool teachers, who have prior work experience in early childhood education. In particular, this study focused on gaining a deeper understanding of which competences preschool teacher students and preschool teachers attribute to their education. Interviews were conducted with one preschool teacher education student and two recently graduated preschool teachers. The findings showed three competences reported as important by the participants: critical (self-)reflection, the competence to listen to the children, and the competence to care. Moreover, the participants believed that being confident in one’s profession, knowing why they are doing what they are doing, and the competence to reflect are competences gained in preschool teacher education. Lastly, the participants described a connection between theory and practice, which suggest that students with prior work experience do not experience a ‘reality gap’ between their education and the practical field. The research conducted in this study contributes to what is known about teacher competence and, more specifically, it gives more insight into the development of competence in preschool teacher education.