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In this paper, the transformative potential of exchanging stories of experience and practice among peers is explored. Drawing on a participatory action research study with beginning teachers in an internship system, the role of story-telling is traced, both as an obstacle and a contributor to professional development. In addition, the use of narrative by the teacher educator is examined, in initially providing some articulation of a 'voice', previously suppressed within the group culture. It is argued that, unless some of the narratives told by beginning teachers are 'rewritten' in constructive ways through reflective processes, little constructive transformation of classroom practices will ultimately occur as a result of such story-telling. However, the function of narrative in enabling the formation of a group culture appropriate for this 'rewriting' is also described and analysed, as is the process of identity change for the participants involved - once transformative story-telling becomes the convention of the group.