Psychological assessment in school settings is distinguished from psychological assessment in other settings according to populations (e.g., students, teachers), problems (e.g., academic, social), procedures (e.g., consultation, instruction), and the setting in which assessment and intervention occurs. The purposes driving psychological assessment in schools (i.e., screening, diagnosis, intervention, evaluation, selection, and certification) are reviewed. Following this review, the current status and practice of psychological assessment in schools is described (i.e., interviews and record reviews, observational systems, checklists and self‐report techniques, projective techniques, standardized tests, and response‐to‐intervention approaches). Assessment of academic achievement is given special attention in this chapter, in relation to psychoeducational diagnosis, and in relation to the increasing use of academic achievement assessments in educational accountability and standards‐based educational reforms. The chapter concludes with a prognostication about the future of psychological assessment in schools related to four key themes: (1) aligning assessment to scientific and technical advances, (2) aligning assessment to educational standards, (3) accommodating diverse learners in assessment, and (4) the utility of assessment for intervening with students.