Mobile tools are integrated into teacher education settings to provide contextualized, connected, and collaborative teacher learning practices. In this case study, the video-enhanced observation (VEO) app was used in a science methods course to facilitate preservice teachers' reciprocal peer-teaching of inquiry-based lesson study. This research examined preservice teachers' perceptions on the challenges and affordances of using video enhanced mobile observation with peer-teaching feedback. Results from the technology acceptance model (TAM) revealed moderate levels of perceived ease of use, usefulness, and intention to use the VEO app. Further analysis of the open-ended questions and semi-structured interviews revealed self-reflection, feedback, and inquiry-based teaching support as emerging themes for the app integration. This research offers recommendations for implementing video enhanced mobile observation as a promising formative and performative-based assessment strategy within peer-feedback contexts in teacher education programs.