The purpose of the study is to assess the prospects and implementing continuous assessment (CA) in in higher education. Data were collected through a structured questionnaire from instructors and students of Adigrat University as well as Mekelle and Aksum Universities for comparison purpose. Both quantitative and qualitative data were carried out. Result of this study indicated that, instructors were not continuously collecting information about student progress, small number of assessment is used in courses and few instructors give feedback at all. Significant number of instructors and students had poor knowledge and negative attitude towards CA. Based on the results, it can be concluded and recommend that instructors need to use the results from CA as a means of identifying students' progress and thereby providing support. Accordingly, departments need to have strong documentation and reporting systems, the maximum and minimum numbers of students in a class need to be put at a standard level. In addition, concerned officials of the university need to closely examine the challenges. On the other hand, offering pre remedial classes on specific courses, putting tests on the exam banks, establishing and following student networking programs and peer learning groups, tutorial classes, providing consultation hours, ensuring classroom size, continuous assessment, encouraging students participation in the classroom and providing incentives for instructors had positive effect on academic performance.