The use of web-based learning and assessment tools is growing in tertiary institutions around the world. To date, very few papers have reported the development and evaluation of a web-based formative assessment tool for postgraduate students. The aim of the present paper was to report on the development and evaluation of an online formative assessment tool for this student group. The web-based formative assessment tool was evaluated by a sample of undergraduate students, postgraduate students and academic staff within a psychology department in order to determine the suitability and sensitivity of the tool. The results of this pilot test suggest that the development of such a tool is both appropriate and feasible for Masters students studying psychology. (Contains 2 tables and 2 figures.)