The current literature review reports the results of four international research studies conducted within recent years to investigate the effectiveness of implementing Dynamic Assessment (DA) in assessing vocabulary development of English language learners. The results of the literature review highlight the positive effects of implementing DA in vocabulary acquisition despite the fact that the researchers found few studies that discussed DA for vocabulary development. This literature review includes a brief summary of the current research from 2015-2018, limiting the findings of DA to vocabulary development, and suggesting guidelines for implementing DA in language classrooms and for future research. The theoretical background of DA supports its applicability to classroom practices, based on the sociocultural theory of Vygotsky. The opportunity provided for the learners during the implementation of DA furthers cognitive, language, and developmental skills. The finding of this literature review highlights the applicability of DA in language classrooms for vocabulary development from the point of view of sociocultural theory.