This chapter examines research on issues of validity and reliability in assessment of students’ literary responses associated with their experiential transaction with a literary text. It describes the uses of summative assessment of learning literary responses as well as formative assessment for fostering learning of literary responses. It posits that effective summative assessment of literary responses involves open-ended writing tasks or uses of student-generated portfolios based on students’ written responses over time in lieu of multiple choice items, while at the same time taking into account the influence of differences in language proficiency, requiring development of prompts and tasks designed to accommodate for variations in language proficiency. It posits that effective formative assessment of oral literary responses involves facilitation of classroom or online discussions whereby students can generate ample responses for teachers to assess based on shared criteria or rubrics that can also be used to foster students’ self-assessing of their discussion responses. And, to provide effective formative assessment of students’ written literary responses, it recommends creating engaging, open-ended writing assignments with clearly specified criteria for defining effective interpretations so that teachers can provide descriptive feedback through individual conferences, written comments, or audio recordings to foster student self-assessing and revision of their writing, as well as training peers to provide feedback.