Observation is a useful tool, even in infant and toddler classrooms. Applied correctly, observation and assessment can help lay a foundation for a successful education throughout life. As appropriate practices are researched and policies change, teachers and caregivers of the youngest children (referred to as careteachers for this article) find themselves in the middle of the assessment challenge. Many early childhood programs and teachers struggle with implementing observation and assessment practices. With increasing demands of families and administration, the careteacher's plate can be very full. However, appropriate practices suggest that an ongoing assessment system should be implemented for all children in-group care settings. Accreditation criteria from the National Association for the Education of Young Children or NAEYC (2006) require a systematic and authentic assessment program be implemented for all children. This system should include observation, screening, and criterion based strategies. Many schools are implementing these practices for their preschool programs but infant and toddler programs can benefit from them as well. This article will briefly address the why, what, and how of observation as assessment with infants and toddlers.