<p>The study examined Estonian teachers’ reading-related knowledge and its relations to their perceived skills to teach reading in association with professional background and experience. The initial sample consisted of 214 teachers for instrument validation. For the main analyses, a subsample (<i>n</i> = 169) was used, comprising three groups: general education teachers (<i>n</i> = 80), special education teachers (<i>n</i> = 49), and special education student teachers (<i>n</i> = 40). Overall, teachers demonstrated relatively modest levels of reading-related knowledge, particularly in declarative content knowledge. Special education teachers outperformed other groups in all three content knowledge areas: declarative, procedural, and pedagogical. The path model showed that teachers with higher declarative knowledge perceived their differentiation skills as higher. In contrast, teachers’ procedural knowledge was negatively associated with perceived skills in both differentiation and supporting reading motivation. Teachers who perceived themselves as more skilled in differentiation and supporting reading motivation tended to demonstrate lower levels of procedural knowledge. These findings suggest the presence of both self-critical awareness and overconfidence, the latter of which could reduce teachers’ awareness of their learning needs and hinder their engagement in professional development. Teaching experience had no effect on any content knowledge areas, although more years of teaching experience were associated with higher perceived skills in differentiation. These findings highlight the need for teacher education and professional development programs to better align perceived skills with actual knowledge through the use of self-assessment tools, structured feedback, and guided reflection on instructional practices.</p>