This article offers an extended definition of prosody by examining the role of prosody in the production and comprehension of L2 spoken language from mainly a cognitive, interactionalist perspective. It reviews theoretical and empirical L1 and L2 research that have examined and explored the relationships between prosodic forms and their functions at the pragmatic and discourse levels. Finally, the importance and the various dimensions of these relationships in the context of L2 assessment are presented and the implications for L2 testing employing new technologies and automated scoring systems are discussed.