Assessment is an inseparable part of the educational process. To bring out the holistic development of the child, the assessment process should focus on both scholastic and co-scholastic areas of development. Assessment includes a full range of procedures used to gather information on students learning and also gives feedback for further improvement. School-based Assessment makes assessment more continuous and comprehensive, enables teachers to know the strengths and weaknesses of learners, and helps teachers to improve their teaching strategies. This theoretical paper explores the significance of school-based assessment in the teaching-learning process. A comprehensive literature review examines the concept of school-based assessment, its features, and its objectives in the education process. The paper also highlights the rationale and benefits of school-based assessment. This paper suggested that proper orientation and training for the appropriate implementation of the assessment system are required and also various workshops, seminars, and training sessions should be regularly organized in the school to acquaint teachers with school-based assessment