Background: Racial inequities are a persistent reality in K–12 schools in the United States. There is a need for consensus and coordination between principals and teachers if they are to address the harm of racial inequities in education. Yet, despite this need and the interdependence of teachers and principals in schools, their preparation is profoundly distinct. Purpose: Although teacher and principal preparation practice and research are distinct, addressing racial inequities in K–12 students’ schooling experiences is central to the work within both professional arenas. In this literature review, we bring together these bodies of literature as we think about ways that preparation supports principals and teachers in developing skills, knowledge, and dispositions to counter racial inequities in their schools. We focus our review around one central question: In what ways does the teacher and principal preparation literature address candidates’ transformative learning around race? Research Design: This review focuses on peer-reviewed literature on race within teacher and principal preparation published between 2001 and 2018. We reviewed studies here that are: (1) empirical, (2) focused on principal or teacher preparation, (3) focused on preparing candidates around issues related to race or racial inequity, (4) published between 2001 and 2018, and (5) based in the United States. We ultimately identified 79 articles, 24 related to principal preparation and 55 related to teacher preparation. We drew on critical transformative learning theory to guide our analyses. Findings: Overall, we identified more commonalities between the two literatures than differences. Our review suggests that race is understood in three main ways: in terms of “difference,” “power,” and “racism.” Race-as-difference focuses on differences between individuals related to race or culture. Race-as-power emphasizes that these differences result from systemic oppressions. Race-as-racism centers racism and/or white supremacy. This review reveals complexities of transformative learning across three areas: how candidates’ backgrounds inform their learning; how clinical experiences present opportunities and constraints for learning; and how emotions influence learning. Recommendations: Preparation programs must educate teachers and principals about race-as-racism. Candidates need to come to understand the role of systemic racism in society and in schooling, beyond understanding individual differences. Critically, teacher and principal preparation faculties must work together across courses and experiences. Finally, there is a need for those who educate educators to receive preparation for this role.