Literacy design by using digital learning resources in the instructional activities at school is presently inevitable. Besides providing learning materials, digital learning materials are also suitable for applying authentic assessment that can improve learners’ skills and competencies contextually. The study is intended to explore students’ perceptions on the use of the YouTube as materials for authentic assessment. The study was carried out through quantitative and qualitative surveys with 47 graduate students at Yogyakarta State University, 45 domestic and 2 overseas students. The study took place in a blended learning context. Students were asked to complete an on-line questionnaire, practice authentic assessment in class, and conduct observation activities. Data were analyzed by descriptive statistics and descriptive qualitative method. Findings show that students’ perceptions on the use of the YouTube channel and authentic assessment are generally positive. Almost all the students agree with the genre-based language learning and assessment of which one of the resources is the Internet and all its derivations; almost all of the students agree that the implementation of the YouTube-based instructional processes applies the authentic assessment model with the primary performances of speaking and writing using a rubric; practice of students’ performances in authentic competencies is scored and commented on by their peer.