As a growing approach to assessment, learning-oriented assessment (LOA) has recently flourished to position learning at the center of assessment practices. It aims to unify assessment, teaching, and learning. However, little is written and known about its benefits, challenges, and practices in English as a foreign language (EFL) contexts. To shed light on these aspects, the present study was a bid to unpack Iranian EFL teachers’ perceptions about the benefits, challenges, and professional activities that facilitate LOA understanding and practice. To this end, 40 EFL teachers including both genders were invited to a semi-structured interview held in person. The results of the thematic analysis obtained by MAXQDA revealed that Iranian EFL teachers had different perceptions regarding LOA. They argued that LOA is a process-based, feedback-oriented, formative, and alternative assessment technique that foregrounds feedback and progress rather than the final outcome. Furthermore, it was identified that LOA can be practiced by using alternative assessment, performance assessment, dynamic assessment, peer assessment, self-assessment, and portfolio assessment. Likewise, the results demonstrated that LOA is beneficial in enhancing classroom interaction, collaboration, and engagement, integrating assessment, teaching, and learning, and monitoring students’ progress. However, the time budget, large classes, and teachers’ lack of knowledge and training on LOA were perceived as challenges for applying LOA. Furthermore, it was found that Iranian EFL teachers supported the use of training courses, reading articles and books, and attending assessment-related workshops, webinars, seminars, and conferences to improve LOA knowledge and skills. The study provides implications for EFL teachers and trainers, who can use different assessment techniques/practices representative of LOA.