Dynamic assessment is proposed in this paper as an alternative frame of reference for conducting assessments in occupational therapy. Growing concerns regarding the use of traditional assessment techniques are reviewed with an emphasis upon their inability to provide Information useful in planning therapeutic intervention. Dynamic assessment is described as a systematic process that involves task manipulation and modification of a client's functional level during the assessment procedure. The theoretical foundations of dynamic assessment are presented and the adaptations required to perform this type of assessment are outlined. Dynamic assessment yields Information about the learning processes of the client, the extent to which his performance can be modified and the methods of intervention which will facilitate the greatest success. Examples are provided of the immediate applicability of this approach within occupational therapy.