This study has two purposes: the first is to present the general condition of public education in the late nineteenth and early twentieth centuries by showing the reformation process in educational institutes and teacher training, and the relationship between this process and the New Education movement in the Ottoman Empire; the second is to determine to what extent Mustafa Sati Bey, often referred to as the Pestalozzi of the Ottoman Empire, contributed to the New Education movement through the analysis of his opinions on education, and his attempts to open a New School. As a result of Mustafa Sati Bey's analysis, New Education practices in the Ottoman Empire were stated to be practising a unilateral receiving-and-adapting procedure and the Ottoman Empire was positioned at the periphery in terms of the circulation of the movement. In his New School and in the Teacher Training School, Sati Bey was concerned with the New Education movement both on an administrative and operative level. However, his practices were not sufficient to create his own theory and examine any other theory. Thus, when evaluated in terms of his contributions to the New Education movement, Sati Bey is positioned somewhere between practical reformer and practitioner.