The study determined teachers' self-rated knowledge of the content topics, the critically of problems encountered in teaching values education and their attitude towards values education and assessed if these are related to the teachers' personal and professional characteristics. This study was conducted in school year 2000-2001 in kalayaan national high school, Caloocan city among fifteen values education teachers. The values education teachers of kalayaan national high school are mostly females, young and have taught the subject for an average of 3.6 years. Almost all of the, did not attend any training related to the teaching of values education and specialized in values education. The research design used in this study was descriptive correlational method. Questionnaires were distributed to the respondents. Descriptive statistics was used to analyze the variables while fisher's probability tests and pearson product moment correlation technique determined the relationships between teacher characteristics and perception of knowledge of content topics, the criticality of problems encountered and attitude towards values education, respectively. The respondents believed they have much knowledge o9f the values education content topics and perceived problems related to strategies as slightly critical and those with instructional materials as moderately critical. The teachers also have positive attitudes towards values education evidenced by their approval. Fisher's probability tests revealed that those with a teaching experience of six years or more tend to view problems as more critical compared to those whose less than four years of teaching experience. Teachers characteristics were not significally related to self-rated knowledge of content areas and attitude toward values education, respectively. The teachers identified family influenced and environmental influences such as media, as the common causes of students' poor values while lack of training and seminars as the most common perceived cause o the ineffectiveness of values teaching, to solve these problems, the teachers recommended that more training in values education should be given. The researcher recommends an action project to train teachers, workshops on the different methodologies and strategies in integrating values education all subject Ares and to improve the teaching of values in classroom through inter-agency linkages. other recommendations include a project involving parents regarding their contribution to the development of values in their children so that values education in both school and home will be further strengthened as well as enhancing peer counseling in the school.