Peer assessment has emerged as a powerful pedagogical tool in higher education, particularly in disciplines that require critical thinking, professional judgment, and collaborative skills. In accounting education, where traditional assessment methods often emphasize individual examinations and procedural knowledge, peer assessment offers an alternative approach that promotes deeper learning and reflective practice. This research article examines the effectiveness of peer assessment in accounting classrooms, focusing on its impact on student engagement, learning outcomes, critical thinking, and professional skill development. Drawing on educational theory, empirical studies, and best practices in accounting pedagogy, the paper develops a comprehensive framework for implementing peer assessment effectively. The study discusses instructional design, assessment strategies, benefits, challenges, and institutional considerations. The findings suggest that when carefully designed and supported, peer assessment significantly enhances learning quality and prepares accounting students for professional environments characterized by teamwork, evaluation, and accountability.