The primary purpose of this exploratory study is to provide insight on how to use online discussions to foster collaborative learning and how to design assessment processes to evaluate the effectiveness of those discussions. This study focuses on the pedagogical role of discussion, effective practices in discussion, guidelines for creating discussions to enhance learning, and the use of rubrics for assessment and evaluation. This study also provides an overview of the pedagogy of online assessment with an emphasis on mastery learning instructional methods. Effective practices in the use of online assessment and guidelines for aligning learning objectives with the most appropriate assessment tool are also emphasized. This study concludes that using best practices in online discussion and assessment can enhance collaborative learning which results in students having a deeper understanding of course content because of more time on task, increased motivation, more engagement, improved teamwork and interpersonal skills, enhanced critical thinking abilities, improved self-esteem and increased ownership of their own learning.