Teacher efficacy refers to a teacher's belief in their competence in a given situation. Teacher efficacy has been extensively researched including in the context of inclusive education for students with special needs. This study aims to conduct a literature review on the predictors and consequences of teacher efficacy in the setting of inclusive education. Online literature search was conducted across three databases, namely ERIC, ProQuest, and ScienceDirect. The keywords used in the search was ("Special Educational Needs (SEN)" OR "inclusion) AND (" antecedent "OR" consequence ") AND" teacher selfefficacy. A total of 33 articles (N = 3472) were reviewed through a series of screening steps based on established inclusion and exclusion criteria. The findings show that teacher efficacy predictors come from internal (e.g. knowledge, personality profiles, experience interacting with disabled people, teaching experience, an experience of training) or external (e.g. school climate). Teacher efficacy can have an impact on attitudes and behaviors towards inclusion, work attitude (e.g. burnout, job satisfaction), collective self-efficacy, and student-related decision making (referral bias). There are contradictory research findings and limited research on the impact of teacher self-efficacy on the development of students with special needs. Suggestions for further research in Indonesia will be discussed.