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For proper understanding of Ethiopian university students’ needs it is important to understand the conceptions and practices related to student assessment. In this presentation we describe a study in which data were gathered from four purposely selected public universities in Ethiopia. Interviews were conducted with 40 instructors and 20 higher officials, and focus group discussions were held with 84 undergraduate students. The findings indicated presence of major gaps in both conceptions and practices of student assessment. Most of the instructors lacked a good grasp of the overall notion of student assessment/continuous assessment (CA) and its fundamental components of planning, assessing and feedback provision (CA is considered here to comprise planning, assessing and providing feedback to students). Instructors’ understanding of planning suffers much more than their conceptions of assessment and feedback. Regarding the actual practices of student assessment (or CA), nearly all instructors did not plan for student assessment; only a minority of instructors appeared to implement CA effectively using a mix of methods; and a majority of instructors did not provide feedback to their students. Instructors’ efforts to use CA effectively are hampered by several factors including gaps in instructors’ assessment related knowledge and skills, large class size, time constraints, heavy teaching load, students’ low level of engagement and motivation and instructors’ low level of commitment. Although the universities attempted to narrow the gaps through professional development trainings, the quality of the trainings offered were judged to be far behind from the expected level. Recommendations are provided to enhance instructors’ conceptions and practices of student assessment through a more meaningful capacity building training programs.