This research utilized literature review to achieve the following goals: 1.To trace the historical development of teacher education in Japan. 2.To explore the recent reform scheme of teacher education in Japan. 3.To synthesize the relationship between the reform scheme and the operational mechanisms of the government. The conclusions from the study provided a database of the characteristics and information concerning the operational mechanisms and the government’s role in Japan’s teacher education reform for the reference of scholars and graduate students in future studies. Undoubtedly, 2004 was a fresh year in the history of higher education system development in Japan. It was also a significant event in the history of modern higher education development of the world. The reform, however, was not only a fundamental one (from state to corporation), but also a massive one for the educational administration management system (from equality and protectionism to free competition and prioritization). As for educational goal and curriculum design, it emphasized distinction and distinctiveness (from unitary and controlled to internationalization and information-based). In other words, it was an audacious departure from previous thinking. In the past, there was a close relationship between state power and the educational system; now, it strides in the direction of educational function and market mechanisms. Thus, from this aspect, the reform of the teacher educational system in Japan was influenced by both forces of the state control mechanisms and free market competition.