All forms of professional education and training that will mould responsible and productive teachers should have both theoretical and practical components. Hence, teaching practice becomes an integral part of teacher training programme for all educational strata. The study examines challenges encountered by prospective special education teachers during teaching practice exercise in selected special schools in Oyo State, Nigeria. The main research instrument was questionnaire of modified 4-likert type scale. A reliability coefficient of 0.87 was obtained through the use of test-retest approach. The participants for the study were teaching practice student-teachers that were purposively selected within special schools in Oyo State, Nigeria. The findings of the study revealed that, a number of student teachers demonstrated inadequate teaching skills and requisite competence to effectively execute teaching practice. Further, the study’s outcomes showed that, student-teachers in school for learners with hearing impairments had the most challenges, particularly those who are not familiar with the use of sign language or other communication strategies during teaching practice exercise, this was followed by student-teachers in school for the visually impaired students, while student-teachers in school for the intellectual disabilities had the least challenges during teaching practice exercise. The study also revealed that, there is no significant difference in the challenges experienced by male and female student teachers during teaching practice. The study concludes by recommending that, certain variables such as relatively small class size, effective methods of teaching and motivation and interest believe to be critical factors in the effective teaching practice should be encouraged. And again, teacher training programme that prioritises effective and adequate teacher education programme should be put in place