Direct observation of procedural skills (DOPS) is a new workplace assessment tool. The aim of this narrative review of literature is to summarize the available evidence about the validity, reliability, feasibility, acceptability and educational impact of DOPS. A PubMed database and Google search of the literature on DOPS published from January 2000 to January 2012 was conducted which yielded 30 articles. Thirteen articles were selected for full text reading and review. In the reviewed literature, DOPS was found to be a useful tool for assessment of procedural skills, but further research is required to prove its utility as a workplace based assessment instrument.