This thesis explores the perspectives of primary and secondary school teachers on the processes of assessing and grading students' knowledge and abilities. The introductory section provides an in-depth overview of key theoretical frameworks related to educational evaluation, distinguishing between monitoring, assessing, grading, and evaluating student performance. It analyses various assessment methods, along with the purpose and function of grading, considering the advantages and disadvantages of specific assessment methods, as well as the most prevalent errors in assessment practices. The research was conducted on a sample of 131 primary and secondary school teachers from the city of Dubrovnik, utilizing a combination of a questionnaire and a psychometric scale. The study aimed to investigate key challenges in assessment and grading, such as teacher subjectivity, inconsistencies in grading criteria, and transparency in the assessment process. Statistical analyses, including arithmetic means, t-tests, and Pearson’s correlation, indicated that the majority of teachers perceive grades as inadequate indicators of students' actual knowledge and abilities. Written and oral assessments emerged as the most frequently employed methods. Significant differences were observed between primary and secondary school teachers’ views, particularly concerning the objectivity and frequency of specific assessment methods. The transparency of grading was further examined through ttest, revealing statistically significant differences between the responses of primary and secondary school teachers. Pearson’s correlation analysis revealed a significant relationship between teachers' years of experience, the type of school they work in (primary or secondary), and their views on assessment and grading practices. The findings underscore the necessity for enhanced transparency and the development of clearer grading criteria to improve perceptions of fairness in the grading process. Furthermore, the study advocates for continuous professional development for teachers in the areas of didactics, methodology, and docimology, alongside the increased use of formative assessment techniques to promote a deeper understanding of educational goals and learning outcomes among students.