The purpose of this study was to find out the challenges of implementing continuous oral assessment,rnto assess how the perceptions of teacher-educators and student-teachers influence the current practicesrnof continuous oral assessment.rnTo conduct the study, descriptive survey method was employed. The study was conducted in Debre-rnBirhan Teacher Education and Vocational Training College and the data were collected from 75rnstudent-teachers and 10 teacher-educators of the college. Questionnaire consisting of closed and openendedrnquestions was used as the main data gathering tool. It was substantiated with in depth andrnfocus group interviews. The findings of the study revealed that both the teacher - educators andrnstudent –teachers have positive attitude towards continuous oral assessment. Surprisingly, however,rnthe results of the study indicated that continuous oral assessment is a neglected area of practice.rnAmong the factors affecting the effective implementation of continuous oral assessment; students’rnlinguistic background, structural constraints, absence of college level assessment policy, inrnadequacies in the use of informal continuous oral assessment methods, negligence of formativerncontinuous assessment were found to be the major ones. Finally, recommendations were put forwardrnbased on the major findings so as to minimize the problems affecting the effective implementation ofrncontinuous oral assessment.