The paper reviews current practices in dynamic assessment to address issues in quantifying learning in educational settings. Brief theoretical foundation and historical background on dynamic assessment and its evolution are followed by a more detailed description of recent advances. Dynamic assessment is conceptualized as a process-oriented assessment that provides a wealth of information about individual and group levels of performance as well as about potential performance in any given domain. It is presented as a meaningful addition to standardized assessment. Particular emphasis is placed on dynamic approaches that are manualized and tend to yield reliable and valid data. In addition, capitalizing on the knowledge available in the field, we present an example of successful implementation of dynamic assessment in an academic domain in classroom settings. Strengths and limitations of research and practice in dynamic assessment are also discussed.