BACKGROUND While much research has been conducted to study the effect of teaming on student learning and attitudes, few studies have explored the nature of team discourse and how these discussions support or hinder student learning and self-efficacy. PURPOSE (HYPOTHESIS) This study investigated the relationship between verbal exchanges, self-efficacy, and individual student achievement. Results are discussed through the lenses of two frameworks: Bandura's social cognitive theory and Vygotsky's social constructivist theory. DESIGN/METHOD Twenty-two first-year engineering students participated in this study. The verbal exchanges of these students were recorded and then coded into 35 discourse moves and six discourse actions. Data on students' pre and post self-efficacy were also collected. Correlations between discourse actions, self-efficacy scores, and individual student achievement were computed. RESULTS Students engaged in six types of discourse actions: task-oriented, response-oriented, learning-oriented, support-oriented, challenge-oriented, and disruptive. Results indicated no direct correlation between support-oriented discourse (verbal persuasions) and achievement. However, there was a moderate positive correlation between post self-efficacy and the extent to which a student engaged in support-oriented discourse. Engaging in challenge-oriented or learning-oriented discourse did not reveal correlations with self-efficacy or achievement. CONCLUSIONS Finding that self-efficacy and achievement are related confirms Bandura's self-efficacy theory. Furthermore, the low self-efficacy of under-performers was evident in their grades, as well as in the conversations of team members. However, contrary to theory, supportive comments (verbal persuasions) received were not correlated with self-efficacy. The scarcity of challenge-oriented discourse (argumentation) is a concern and should be addressed in future research.