This study seeks assessment in Individualized Instruction-learning from the viewpoint of dynamic assessment. Dynamic assessment has been motivated by the inadequacy of conventional static assessment to provide accurate information about the individual's learning ability, specific deficient cognitive skills, and change processes. The objectives of this paper are to review the major criticism of the standardized static testing approach, present the theoretical basis and development process of the dynamic assessment approaches, describe current research approaches of dynamic assessment with diverse samples, and suggest some directions for assessment in Individualized Instruction-learning. Crucial issues of evaluator training, reliability and validity, cost-effectiveness, and generalization in relation to dynamic assessment are also discussed.