The purpose of this study was to determine the relationship between self-efficacy and utilization of alternative assessment among physical education teachers. The descriptive correlation design was utilized with the questionnaire as the main tool in gathering the data. A total of 120 college physical education teachers were selected as respondents using purposive sampling technique. Mean and standard deviation, frequency and percentage, Pearson r and multiple regression analysis were the statistical tools used in analyzing the data. Findings revealed that the teacher’s self-efficacy was very highly evident in the conduct of physical education classes. A very high self-efficacy in students’ engagement, instructional strategy and classroom management was also revealed. On the other hand, self-assessment was the preferred alternative assessment utilized by physical education teachers. Performance-based, rubrics, portfolio, peer and self-assessment were utilized at a very high extent. The substantial significant relationship between self-efficacy and alternative assessment was revealed in the general findings of the study. Indicators of self-efficacy which included student engagement and instructional strategy had a significant relationship to performance-based assessment, portfolio, rubric, peer-assessment and self-assessment. However, classroom management revealed a slight significant relationship to portfolio, rubric, peer and self-assessment. The study also showed that students engagement and instructional strategy best influence utilization of alternative assessment.