The education system has always been bound by the continuous and comprehensive processes of assessment and evaluation. The inevitability of evaluation in the system of education has led to the notion of development of new practices in evaluation. With the constant development of the education system comes the requirement of the upgradation of the processes of evaluation based on the current trends in evaluation. The present paper deals with the importance of integrating the current trends in evaluation in the education system with a specific focus on the method of knowledge-based evaluation. It speaks about the relevance and need of knowledge-based evaluation in today’s world.