Following the innovations in the field of psychometrics, a new movement has emerged out of Vygotsky `s ideas which has opened up new horizons for testers and teachers. This new movement questioning the major tenets of Static Assessment (SA) as totally deterministic, introduced Dynamic Assessment (DA) as an emergenistic and postmodern notion in testing. Unlike SA in which there is no dialog between teacher and learner after the examination, in DA the assessor enters into a dialog with the learner to find out the current level of performance on the task and sharing with him possible ways in which that performance might be enhanced on a subsequent occasion. In fact, in DA assessment and learning are seen inextricably mingled and not separate processes. Regarding the current situation of teaching and learning in Iran in which SA prevails and students in case of failure on any exam at the university have to retake the whole course, squandering time and money, the researchers believe that employing DA principles can be a panacea for students ` failures at the university. To this end, 21 MA students majoring in English language teaching were selected from Ferdowsi University. Taking the final examination in Psycholinguistics, five students failed the exam. After using the principles of DA, three out of five of those students passed the course successfully. The results demonstrated that DA as a new paradigm in testing can compensate for the major shortcomings of SA, linking assessment and learning in a way that it might lead to saving time and money. Finally, testers and teachers were provided with some recommendations to improve testing and teaching situations in Iran.

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