Game-based assessment is a method that may be applied in educational institutions as the use of technology creates new possibilities. Therefore, students need to keep abreast of all these developments and ensure that they are exposed to digital media not only for entertainment, but also for education and learning. It is likely that game-based assessment will be used even more in the future and be a part of student assessments due to its efficiency to enhance students' performance, reduce levels of stress and anxiety during assessment, and provide possibilities for measuring the reliability of students' skills compared to traditional assessment methods. This paper first presents a literature review of game-based assessment as a modern method evaluating learners to verify their proper progress in terms of the educational process followed by introducing part of the theories that support this kind of assessment. The paper also discusses some of the advantages and disadvantages of using this type of assessment to evaluate students of different levels. Finally, this paper sheds light on some examples of the effective use of game-based assessment approach to demonstrate the success of this type of assessment and concludes with important suggestions for educators interested in game-based assessment.