The study was aimed to investigate the implementations and challenges of continuous assessment in selected Public Universities of Eastern Ethiopia. Descriptive survey research design was employed to carry out this study because it is used to describe the characteristics of a given population in a systematic and accurate fashion. Stratified random sampling technique was employed to collect pertinent information from the respondents through questionnaire and observational checklists. To make the interpretation of the findings easier, the researchers used both descriptive and inferential statistics. The first finding was that almost the implementations of continuous assessment in these selected universities were very poor. The second finding was that there was statistically a significant mean difference among these public universities in utilizing and implementing continuous assessment; the third finding was that there was statistically significant mean difference among these sampled respondents in implementing the three domains of educational objectives; the fourth interesting finding was that the implemented continuous assessment type was highly dominated by cognitive, followed by affective and then psychomotor domains respectively. Finally, it was recommended that instructors should implement continuous assessment not only for the sake of evaluating and marking students' result but also for the sake of learning skills and practices.