This study explored students? opinion towards the opportunities and inhibitive factors for online formative assessment. A Google form survey questionnaire was administered to 124 students to generate the information regarding the opportunities of online assessment. Purposive sampling technique was employed on the basis that participants were students registered through Edmodo LMS studying multimedia courses. A system walk-through strategy was used to collect qualitative data from Edmodo platform. A descriptive analysis on the data generated from a survey monkey questionnaire was employed while content analysis was carried out for qualitative data. The findings are presented based on the research questions as follows: First, it was revealed that there were several opportunities from online assessment which included divergent thinking, self-reflection and immediate feedback among students. However, the study revealed several inhibitive factors towards online assessment such as unreliable internet accessibility, lack of technological devices and negative attitudes among students. The study established that in order to have effective online formative assessment, the capacity building to both instructors and students is inevitable. Furthermore, the study calls for the need to harmonize the curriculum by capitalizing on the integration of online formative assessment to support blended learning among digital native students at all levels of education.