ABSTRACT Research has been scarce when it comes to investigating associations between leader support, teacher self-efficacy (TSE,) and student outcomes. Thus, the objective of the present study was to investigate associations between leader support teacher self-efficacy (TSE), classroom emotional climate (CEC), and literacy skills. Two aspects of TSE were included; self-efficacy to discipline and motivate students. 5810 first graders from 300 classes participated, including their respective class teachers. Analysis was conducted by applying structural equation modeling. Leader support related positively to self-efficacy to discipline and motivate students. Moreover, self-efficacy to discipline and CEC were positively related, and CEC related positively to literacy skills. A significant indirect association was found between the discipline dimension of TSE and literacy skills through CEC. School managers should support employees to increase TSE, as a strong sense of TSE can contribute to a sound CEC and improve literacy skills among children in their early school years.