Introduction: Assessment is an important factor that drives student learning.¹ Evaluation of teaching and learning in medical field is best done by the assessment method which tests not only knowledge but also comprehension and psychomotor skills.

Aims and objectives: 1.To compare the effectiveness of Objective Structured Practical Examination (OSPE) with traditional Practical Examination as an assessment tool in Pathology practical examination  among 2nd year MBBS students. 2. To study the perception of students for OSPE in comparison with  traditional method. 3. To study the perception of faculty for OSPE as compared to traditional method.

Materials and methods: OSPE was introduced for formative assessment in the hematology practicals. Assessment  of 125 students were done by both traditional and OSPE method. Performance of the students for practical skills and knowledge were compared by both methods. Feedback was taken using prevalidated questionnaire from students and faculty to know their perceptions.

Results: According to our study, OSPE showed higher scoring than traditional method. The preferred method of assessment by students was OSPE (70.6%), Traditional method (19.8%), Both (7.1%). 50% of faculty preferred traditional method over OSPE due to its acceptability and feasibility.

Conclusion:OSPE can be considered as an effective tool for practical skills, understanding and interpretation. Faculty needs to be motivated to design and modify the stations of OSPE with innovations to make it   more acceptable and feasible.