With advances in computerbased technologies and the emergence of elearning, there are unprecedented opportunities to reconsider assessment of learning (and, axiomatically, of teaching) and how this can be undertaken. One approach is adaptive assessment. Although it has existed in the tertiary environment since the time of the oral examination, advanced technologies allow much fuller exploitation of the possibilities inherent in a dynamic system of testing that responds to the user. Having described the characteristics of adaptive assessment, this paper considers how it can achieve significant pedagogical aims within the sector. The paper differentiates between adaptive assessment to assist learning and adaptive assessment to assess achievement. How adaptive assessment can be put in place and salient issues, such as security and system integrity, when such assessment is used for credit, are then discussed. The paper concludes that the capability exists but it has yet to be exploited within higher education as a viable approach to assessment and as a contributor to quality learning.