Workplace based assessment (WPBA) refers to a group of assessment modalities which evaluates trainees’ performance during the clinical settings. Hallmark of WPBA is the element of observation of the trainee’s performance in real workplace environment along with relevant feedback, thus fostering reflective practice. WPBA consists of observation of clinical performance (mini-clinical evaluation exercise, direct observation of procedural skills), discussion of clinical cases (case based discussion), and feedback from peers, coworkers, and patients (multisource feedback). This literature review was conducted on the databases of MEDLINE, EMBASE, CINAHL, and The Cochrane Library. Data were retrieved by connecting Medical Subject Headings (MeSH) keywords: ‘workplace based assessment’ AND ‘mini-clinical evaluation exercise’ AND ‘direct observation of procedural skills’ AND ‘case based discussion’ AND ‘multi-source feedback’. Additional studies were searched in the reference lists of all included articles. As WPBA is gaining popularity, there is a growing need for continuing faculty development and greater evidence regarding the validity and reliability of these instruments, which will allow the academia to embed this strategy in the existing curricula. As of today, there are conflicting reports about the educational impact of WPBA in terms of its validity and reliability. This review draws upon the spectrum of WPBA tools, their designs and applications, and an account of the existing educational impact of this emerging assessment strategy in medical education. Finally, the study reports some educational impact of WPBAs on learning and emphasises the need for more empirical research in endorsing its application worldwide.