The aim of teaching observations and post observation feedback in higher education is to support teachers to reflect on and improve their teaching. Yet, our understanding of tutors' (observers') and teachers' (observees') capacities for capitalising on these feedback opportunities is limited and there is little empirically derived advice for either the observer or the observee on the post observation feedback processes. We argue for the need to conceptualise and operationalise observational feedback literacy as a particular type of feedback literacy which is played out in both the design of the post observation feedback session, and in the moment-by-moment feedback talk. Drawing on the concept of student and teacher feedback literacies, this paper offers a framework of observational feedback literacy which identifies how observers and observees act in feedback literate ways. The framework foregrounds observer feedback literacy and recognises the importance of providing opportunities for observees to enact feedback.