A self-aligning bearing assembly is disclosed which is capable of reacting both radial and axial loads. An inner bearing race is connected to a rotatable shaft that is subjected to such loads. An outer bearing race is installed within a housing and is capable of movement in multiple directions with respect to the housing. The outer bearing race can rotate in planes corresponding to longitudinal sections of the outer race, i.e., rotational displacement. In addition, the outer bearing race can translate with respect to an inner wall of the housing in an axial direction of the housing, i.e., axial displacement. Such movement is enabled by the use of radially displaceable thrust rings which contact the outer bearing race, and control of the geometry of the outer bearing race and inner wall of the housing.