The present article reports a systematic review of the assessment literacy concept in the higher education field. The purpose of the review is to provide an updated overview of theory and research on this topic. Despite the recent changes in culture and practice in the higher education field, assessment literacy is frequently defined as a concept in its infancy. While the K-12 education and teacher training sectors have produced a consistent amount of research, assessment literacy seems to be under-conceptualized in the higher education sector. The imprecise conceptualization, ambiguous language, circularity, and lack of definitions have considerable implications for educational research and faculty members' assessment practices. Despite the limitations of a systematic review study, this article provides a critical conceptual framework that can inform further research on assessment literacy in higher education.