The paper explores the multifaceted challenges and opportunities associated with assessment literacy in contemporary educational contexts. Assessment literacy refers to the understanding, knowledge, and skills required to engage effectively with the assessment process, including designing, implementing, and interpreting assessments. The study underscores the significance of assessment literacy in ensuring fair, valid, and reliable assessment practices. It identifies several challenges such as the lack of standardized definitions and frameworks, limited professional development opportunities for educators, and the influence of external factors like standardized testing pressures. Despite these challenges, the paper highlights several opportunities for enhancing assessment literacy, including the integration of technology, the promotion of continuous professional learning, and the development of collaborative assessment cultures. By addressing these challenges and capitalizing on these opportunities, educational institutions can foster a more informed and skilled assessment community, thereby improving the overall quality of education.