This article is a review of the Self-determination theory (SDT) of Motivation. The theory identifies motivation as a continuum ranging from amotivation to extrinsic motivation and finally to intrinsic motivation (Ryan & Deci, 2000). Intrinsic motivation, thought of as the highest form of motivation satisfying the innate psychological needs for competence, autonomy, and relatedness. These psychological needs are given as a prototype of self-determined behavior and activity. The theory suggests that extrinsic motivated behaviors can vary in the extent to which they represent Self-determination, ranging from the lowest type of external regulation motivation to the highest type of integrated motivation. In this review I wish to present the SDT theory of motivation and to argue that intrinsic and extrinsic motivation must be reconsidered. Although I acknowledge the positive effects of intrinsic motivation I urge educators and researchers to consider the benefits of extrinsic motivation. I critically examine the evidence for and against the model, discuss its limitations, and identify critical gaps for future research.