Formative assessment has received considerable attention among scholars around the world. In Saudi Arabia, formative assessment is perceived as a promising opportunity for improving learning outcomes. The review of literature presents formative assessment as a serious issue that can affect students’ outcomes. In particular, teachers’ perception is an important factor that determines their willingness to apply specific assessment strategies in class. According to the findings, formative assessment leads to positive student outcomes. Importantly, the overall perception towards formative is multi-factored. As such, a single factor cannot be blamed for teachers’ perception and attitude outcomes. Notably, teacher’ experience, education level, and other factors define their perception towards formative assessment. As such, any efforts to influence their perspective will have a significant positive outcome on their willingness to apply formative assessment. However, a further study is needed to quantify the significance of teachers’ perception in influencing their decision to apply formative or summative assessment. 
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