A qualitative research project was carried out to explore the views of children with special educational needs, their parents and teachers about one aspect of educational psychology practice: the dynamic assessment of cognitive skills. The research was carried out in a highly diverse and inclusive borough in East London, by Nicola Lawrence from Hounslow Educational Psychology Service, and Sharon Cahill from the University of East London. The views of nine children were sought through semi‐structured interviews regarding the process of dynamic assessment, supported with tools and techniques to facilitate discussion. The views of eight parents and seven teachers were also sought, through semi‐structured interviews and focus groups, regarding the psychological reports produced from dynamic assessment. Of the original findings acquired through thematic analysis of the data, those pertaining to the perceived impact of dynamic assessment of cognitive skills are reported. Dynamic assessment was reported to impact positively upon the child's emotional well‐being, self‐perceptions, approach to learning and social relationships, both directly, and through the subsequent intervention of parents and educators. Dynamic assessment, as well as providing instructionally useful information for parents and teachers, encouraged them to move beyond locating the problem within the child, to reconceptualising their special educational needs in context. As a result, parents and teachers became more positive and optimistic about the child, the current situation and the child's future. Dynamic assessment impacted upon the child's holistic needs, parenting and the development of inclusive practice in the classroom. It is concluded that from the perspective of service users, dynamic assessment forms a worthwhile and valuable part of educational psychology practice.