Peer observation has been advocated as a means of monitoring and improving the quality of teaching within Higher Education, whilst peer support and review have been used to provide feedback and monitoring within the clinical context. The process of peer observation of practice within educational, managerial and clinical settings could facilitate improvements in all aspects of practice, have relevance as a tool for continuing professional development (CPD) and help improve the quality of care for service users. This article presents the background and relevance of peer observation to health care professionals, suggests a process that can be implemented and considers relevant contextual issues. Finally it suggests that peer observation has potential benefits for all areas and levels of health care practice