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. A review of literature reveals that, formative assessment influences students' outcomes positively. Notably, teachers' perception is an important factor that determines the assessment strategies used in class. Their perception towards formative assessment is influenced by factors such as teaching experience and education level. As such, any efforts to influence teachers' 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 assessment.