The importance of language teachers' lifelong professional development is undeniable. Reflective teaching has recently become an epitome in ESL teacher education. It indicates self-observation and selfevaluation and implies a systematic process of collecting, recording and analysing teachers' thoughts and observations, as well as those of a student. One of the ways to provoke self-analysis and reflection that leads to powerful insights is peer observation. The paper describes the results of the experiment to establish a peer feedback pattern on a regular basis that aimed to create a climate where both givers and receivers of feedback enhance their understanding of best teaching practices which encourage effective learning.The experiment took three years and involved 30 ESL teachers of Kazan Federal University. The participants observed two peer-teachers every semester (four in total over one academic year). It was crucial for the authors to ensure a constructive and productive feedback process. To provide feedback there was established a set of criteria to analyse peer-observation manuals, guidelines for selecting peer observers, a questionnaire targeted to discover the level of self-content with peer-reviewing practice and the depth of reflection.The results of the experiment showed significant improvements in learning from others and better teaching. Findings of the study suggest that peer observation can be fully recommended to ESL teachers to guarantee their continuous development and to conduct the so-called self-audit, or reflection.