Background: Presently various subjective as well as objective assessment methods are available like long question, short question, multiple choice question, problem based learning, OSCE/OSPE, spotting, viva –voce, etc. It is a matter of research that whether these assessment methods as well as innovations are as successful as they promise to be, and whether students perception is similar to teachers perception or not. Objectives: To gain more insight into students as well as teachers actual preference and perception towards available methods of assessment which will be helpful in designing reliable, valid, more structured assessment system acceptable for both students and teachers. Materials & Methods: A cross sectional questionnaire based, observational study was conducted in tertiary care teaching institute of Rajasthan, India. Student and teacher perception analyzed by descriptive and thematic analysis. Institutional Ethical permission and informed consent was taken prior to the study. Results: Out of 500 students studying in different years of MBBS and 100 medical teachers from different departments; only 300 students and 84 teachers responded to the pre-defined and validated questionnaire. Most of teachers (71%) and students (40%) considered MCQ is more scoring as well as better performing assessment method. Both teachers (79%) and students (67%) considered viva voce is more stress full. Regarding intermittent formative assessment methods 50% teachers and 40% students considered intermittent formative assessment very much helpful; most of students (60%) and teachers (50%) favored twice a year assessment and display of results within a weeks in form of marks (students 47% and teachers 50%). Strictness of teacher was most important factor which affects student's performance during viva-voce according to both students and teachers. Conclusions: Though perception of students and teachers are similar regarding most of assessment methods, yet disparity exists which will helpful in further improvement and planning of assessment during development of curriculum