The National Education Policy (NEP) 2020 marks the first significant educational reform of the 21st century, succeeding the 34-year-old National Policy on Education (NPE) from 1986. This policy aims to make both school and university education more inclusive, flexible, and interdisciplinary, addressing the demands of modern society while recognizing the unique abilities of each student. The goal is to transform India into a dynamic hub of knowledge and establish it as a global leader in education. NEP 2020 was created through an extensive and collaborative process, reflecting a deep commitment to reform across all educational levels. It emphasizes the need to enhance teacher training, revamp the examination system, improve early childhood education, and restructure the regulatory framework governing education. The entire teacher education system requires immediate and thorough reform. There is a pressing need to align professional training with ongoing professional development at every stage of education, focusing on aspects such as duration, structure, and level of training. Given the complexity of teaching as a profession, it is essential to elevate teacher education to a university standard, ensuring that programs are rigorous and appropriately extended. Addressing the challenge of scaling teacher education must be done while maintaining high standards of quality and equity. Teachers play a crucial role in influencing classroom quality; thus, it is vital to have highly qualified teacher educators. Furthermore, teachers must be adept at recognizing and addressing the diverse needs, strengths, and challenges of their students to create an engaging and effective learning environment. This paper will explore the different issues and challenges currently encountered in teacher education, along with the reforms suggested by NEP 2020.