Background: Nurse educators are charged with the challenging task of evaluating student learning and abilities effectively using traditional student assessment methods, which come with several inherent shortcomings. New guidelines for nurse educators now present a more competency-based approach to nursing education that calls for objective-driven assessments. Problem: Traditional grading practices lack the ability to connect student learning to their final course grades. However, specifications grading, which directly links grades to learning objectives, has not been not adequately explored in the nursing literature. Approach: A specifications grading system was designed and implemented in an online undergraduate nursing research course. Student and faculty feedback on the system were reviewed. Conclusions: Overall, students and faculty approved of the specifications grading system. Recommendations are presented for adopting specifications grading in nursing courses. Research is needed to explore student perceptions of the grading system and its effects on student learning and performance.