The use of peers in the evaluation of teaching is part of a larger trend in postsecondary education toward a more systematic assessment of classroom performance. Many scholars believe that certain aspects of teaching can be assessed only by classroom observation. This study examines the use that peer reviewers make of teaching products, especially peer observation reports, during the promotion and tenure review process. Results indicate that peer observation reports are seen as an important component in evaluating teaching effectiveness, though perhaps not the best indicator of effective teaching. Despite flaws in peer observation instruments, the results from classroom observation are seen as valid and are used in deliberations about faculty teaching performance. (Contains 4 tables.)