This study explored the competence and confidence of pre-service teachers in discerning fake news as empirical bases for the development of a contextualized media literacy training module. Grounded in Information Processing Theory and Media Literacy Theory, the research employed a sequential explanatory mixed-methods design conducted at Cagayan State University, Andrews Campus, specifically within the College of Teacher Education. Fifty-six fourth-year Bachelor of Secondary Education (BSEd) English students were selected through purposive sampling. In the quantitative phase, descriptive statistics were used to determine respondents’ level of competence across six dimensions: headline sensationalism evaluation, content and logical consistency, source credibility and author information, bias and objectivity, visual and media content, and emotional appeal. Results revealed an overall Basic level of competence (M = 3.40), with strengths in emotional appeal and source credibility but significant weaknesses in bias detection and logical consistency. Meanwhile, respondents reported confidence to a great extent across awareness, comprehension, analysis, evaluation, advanced critical thinking, and active engagement domains, indicating a notable confidence–competence gap. The qualitative phase, analyzed through thematic analysis, identified both positive practices (e.g., source verification, cross-checking, contextual evaluation) and malpractices (e.g., reliance on virality, emotional bias, impulsive sharing, superficial trust in visuals). Findings highlighted inconsistencies between perceived ability and actual evaluative performance. Based on these findings, the results will be utilized in planning and developing an evidence-based Media Literacy Training Module aimed at combating fake news. The proposed module will focus on addressing identified competence gaps by strengthening analytical reasoning, ethical information consumption, emotional regulation, and critical engagement, aligned with SDG 4.7 and SDG 16.10. Overall, the study underscores the need for structured, skill-based media literacy interventions in teacher education programs to bridge the confidence–competence gap and prepare future educators to fight misinformation effectively.