In recent years, educational research and development has focused increased attention on ways of enhancing the instructional value of tests. This ERIC Digest summarizes some of the recent advances in linking instruction and assessment. Studies of teacher effectiveness indicate how important systematic assessment of student progress and use of test information is in making instructional decisions. Three functions are at the heart of integrating teaching and testing in the classroom: (1) diagnosing student knowledge and skill level before instruction; (2) monitoring student learning progress; and (3) providing regular feedback to students. Item banks, developed by various regional and national groups, facilitate linking of tests to instruction. Adaptive testing, in which the items given to a student depend on the student's previous performance, provides a more precise indication of where a student stands in a learning area. Tests based on modern cognitive theory illuminate previously hidden aspects of student thinking and performance. Articles appearing in a number of diverse publications discuss the need for more useful professional development programs for teachers on testing. The ERIC data base has references on learning, adaptive testing, teacher effectiveness, school effectiveness, mastery learning, test item banks, and curriculum-aligned tests. (LMO)