Early childhood is an opportune time to develop physical literacy, acquire movement skills, and promote physical activity. Little is known about early childhood educators' competence (ECEs) and confidence in physical literacy knowledge and its application to practice. The purpose of this research was to examine the competence and confidence of ECEs in physical literacy, and to determine whether exposure to information in this area influences their confidence level. A total of 85 participants completed an online survey. Physical activity knowledge was high; however, error detection and correction knowledge was lower, with high variability in responses. Mean confidence rating (out of 10) was lowest for locomotor skill error detection and correction (6.4 ± 1.8) and highest for physical activity promotion (7.7 ± 1.6). Confidence in movement skill development decreased significantly pre- to post-survey (p < 0.001); highlighting a potential 'topic exposure' effect. These findings demonstrate the need for physical literacy training for ECEs.