It has been a major issue that traditional assessment strategies contradict what we know about the nature of learning fostered by PBL The use of inappropriate assessment methods has been found to negate the effectiveness of PBL (Lai et al., 1997). In this study, students' perception of the subject Clothing Manufacture were compared and analysed in two different situations: 1) A partial PBL implementation in the 1998/99 semester with a final written examination; and 2) A full PBL implementation in the 1999/2000 semester using 100% continuous assessment. Students' perception of PBL is much better when using 100% continuous assessment than when using a final examination. 86% in the former said PBL is good and useful while 50% did so under the latter condition. Subjects of the former group were also asked for their preference on assessment methods. 98% of them preferred continuous assessment and 92% of them were satisfied with the different types of assessment methods and arrangements.