Although there is consistent evidence that emotionally and instructionally supportive teacher-child interactions foster children's early learning, and that teachers’ skill in identifying such interactions is associated with effective practices, less is known about whether teachers’ skill in identifying effective interactions itself has a direct association with children's learning. We examine this question in the current study, using an assessment called the Video Assessment of Interactions and Learning (VAIL). Prekindergarten teachers completed the VAIL by watching short videos and identifying instances of effective interactions. Children's gains in early language and literacy outcomes and early learning behaviors were greater when their teachers demonstrated higher levels of skill in observing and identifying effective interactions of other teachers on video. We discuss these findings in the context of literature on the role of teachers’ observational skills in shaping their practices and the implications for professional development and teacher preparation. (author abstract)