The purpose of the research is to explore the development of peer-observation programme for the use of an extension language school in Hong Kong. The research objectives were to explore teachers' perceptions on a peer observation programme as a means to improve teaching practice, examine how teachers make sense of the peer observation programme after they have taken part in it and to suggest alternative approaches and measures by which schools can improve peer observation programmes in schools. Data was collected from six teachers who participated in peer observation programme in Hong Kong through an interview process. The research has found out that peer observation can be a good tool for continuous professional development for teachers in order to develop their teaching strategies. This is especially important within the field of language education. From the analysis, most teachers are wary of the practicalities of peer observation due to the sensitivity that is associated with it. The research also found out that teachers think that if the peer observation approach is well developed, it can be potentially interesting or generate excitement among teachers.