The study was carried out to investigate evaluation methods of teaching practice of formal and non-formal teacher education institutions. Major objective was to compare the evaluation methods of teaching practice implemented in formal and non-formal teacher education institutions in Pakistan. Four hundred prospective teachers were selected randomly in which 200 prospective teachers were from formal universities and 200 were selected from non-formal institutions. The data were collected by administering the validated questionnaires. Data were analyzed by using two-way chi square techniques to compare the responses of formal and non-formal prospective teachers. Prospective teachers of both formal and non-formal system have the opinion that duration of teaching practice was not enough for their training. Prospective teachers of both systems showed their agreement that they were judged on the basis of; through well introduction of the topic, well presentation and well explanation of the content. Prospective teachers of formal and non-formal universities projected that the evaluation of prospective teachers during teaching practice was satisfactory. Majority of prospective teachers of formal universities intended that supervisor involved the cooperating teacher in their evaluation while prospective teachers of non-formal universities rejected the involvement of cooperating teachers in evaluation.