In this paper we examine theoretical perspectives on assessment in cooperative education placements. As assessment is linked to student learning, we focus briefly on the purposes of assessment. We then consider a range of learning theories that have been, and are more recently, explored as ways to explain the process of learning on cooperative education placements and their implications for assessment. We conclude that assessment that focusses on a student actively participating in a socioculturally-influenced process is likely to be a fair reflection of, and help facilitate, student learning in cooperative education placements.