Assessment of students' work in Virtual Exchange (VE) frequently focuses on their participation in the activities and may also include an evaluation of students' learning. In this chapter, we discuss a two-sided approach to assessing students' work in an intercultural VE project. On the one hand, we evaluated students' engagement in the exchange with the goal of formally assessing their work and assigning it a grade. On the other, we looked at students' intercultural competence development for research purposes. While we believe that it is beneficial to use a combination of assessment tools, reflective portfolios emerged as the most suitable way to assess students' participation, learning, and intercultural competence development in the VE. [For the complete volume, "Assessing Virtual Exchange in Foreign Language Courses at Tertiary Level," see ED624433.]