Peer evaluation research was reviewed from three major perspectives--validity, methodology, and situational factors. Most of the studies focused on either concurrent or predicitve validity in a military training situation. Evaluation criteria included leadership potential, promotion potential, personality traits, and supervisory skills. Substantial validity was generally found, with correlation coefficients in the .30 to .50 range. Reliability and validity of different evaluation methods (rating, ranking, nominations, and combinations of these techniques) did not vary substantially. Evaluation methods did, however, differ in feasibility and acceptability, the latter largely a function of familiarity with the evaluation procedure and perceived difficulty. Situational factors have documented and potential effects which developers and users of peer evaluation should recognize. These factors include group size, informal group structure, demographic characteristics, group boundaries, hierarchical characteristics, friendship, length of association, and types of interaction. Although many issues surrounding peer evaluation or associate evaluation remain unresolved, evidence suggests they are a powerful tool in discriminating complex human behavior. (Author/CP)