Assessment can be a powerful tool in prompting both teaching and learning. It plays a fundamental role in evaluating the students' achievements of the learning objectives. Teachers in most education systems are in charge of assessing their students using different forms of assessment. They spend a great amount of their classroom time engaging in different assessment tasks (Baniabdelrahman, 2010). Yet, assessment's effectiveness depends heavily on their perceptions, beliefs and knowledge (Alkharusi, Aldhafri, Alnabhani, & Alkalbani, 2012). Thus, this study explored Omani grade 1 and 2 English teachers' practices and perceptions regarding the use of continuous assessment (CA) in teaching English as a foreign language. Furthermore, this research examined the influence of teachers' beliefs, previous experience and contextual factors on teachers' CA classroom practices as well as the relationship between teachers' stated beliefs and their actual classroom practices. The study adopted a qualitative grounded theory design in which teachers' practices and beliefs were investigated through using different instruments which were observations, semi-structured interviews and artifacts. Six Omani English teachers from Al Dhahirah Governorate participated in the observation stage and three teachers out of the six were interviewed to seek an in-depth understanding of their beliefs. The data were analyzed using the constant comparative method. The data analysis revealed a gap between the teachers' actual practices and their stated beliefs regarding CA implementation. Although teachers believed in the importance of CA and expressed their positive beliefs towards CA in the interviews, the observations revealed a low level of commitment in implementing CA in their practice. Moreover, the findings highlighted the influence of the teachers' previous experience and impeding contextual factors on the teachers' limited CA practices.