Online education is gradually being incorporated into college and university programs. It is proving to be an effective educational tool for our rapidly changing global marketplace. The fact that online courses operate differently than on ground courses cannot be ignored. Thus, they require teaching techniques and assessment techniques specifically geared for this educational experience. Group projects are quite familiar to students taking courses in the classroom. They are less familiar and perhaps feared by students taking courses online. The fact that participants in online courses do not physically interact with each other leads some to believe that this approach is not viable in an online course. This paper dispels this belief by discussing how group projects can be successfully incorporated into online courses. The paper also describes specific assessment tools which can be used to determine the success of online courses. Specifically, some formative assessment techniques are presented as particularly useful and appropriate for online courses.