<p>The development of a strong professional teacher identity plays an important role in supporting early career teacher development and teacher career longevity. The ways in which tensions between personal and professional identities are experienced and managed by preservice teachers (PSTs) can influence the development of teacher identity. This study explores how PSTs manage tensions they encounter in the development of their professional teacher identity. The study data are eight focus group discussions with a total of 24 PSTs who were near the end of their first year of a three-year, undergraduate, university-based initial teacher education (ITE) programme in New Zealand. Using Bronfenbrenner’s bioecological model of development, with particular attention to the interactions among proximal processes embedded within the model, the study finds that the features of self, development outcomes, context, and time are key elements of managing tensions in identity development. The PSTs also experienced these tensions across layers of the bioecological model and worked at the interface of these layers to manage the tensions. By understanding teacher identity development as being shaped through proximal processes, this study suggests ITE programmes can be purposefully designed with explicit support to assist PSTs in managing the complexities of becoming professional teachers.</p>