Dynamic Assessment, referred to in this paper as DA, is one of the various methods of adopting a particular evaluation procedure in order to identify possessed language skills of individual learners in addition to their learning perspective. The dynamic assessment procedure in other words accentuates individuals’ learning potential before and during a systematic curriculum. This would help examiners to conduct the most fitted criteria for future sessions. DA, derived from Lev Vygotsky’ s (1989) Socio-cultural Theory (SCT) and his concept of Zone of Proximal Development (ZPD), is based on the view that observing individuals’ independent performance discloses the results of their past development, while the purpose of most assessments is prediction of learners’ future performance. The present study thus reviewed the Iranian literature on DA due to the significance of the topic. To this aim, the theoretical background of DA will be first explained. What follows next is the section on the approaches to DA that are fully examined. Finally, recent related studies conducted on DA in Iran will be addressed and reviewed.