Nearly all multidimensional models of communication competence have pragmatic competence at their core. Proper assessment of second language (L2) pragmatics makes many demands on L2 teachers, both in terms of understanding the construct and in language test development. Therefore, being assessment literate helps teachers in developing effective tests geared toward educational outcomes. Despite the importance of assessment literacy (AL) for pragmatics, the field is still under-researched. Mindful of this fact and the significance of pragmatics in L2 learning and assessment, this study adopted the Common European Framework of Reference (CEFR) model of pragmatic competence to examine Iranian L2 teachers' AL for L2 pragmatics and linked the results to the Sociocultural Theory (SCT) for formulating theory-informed answers to the problems in the teachers' assessment of L2 pragmatics. Group interviews were run with 67 participants and then qualitative and quantitative content analyses were performed. The paper discusses the identified problems in the assessment of L2 pragmatics and offers recommendations for raising L2 teachers' AL for L2 pragmatics.