Internal assessment involves the continuous and periodic assessment of students' abilities and skills by their teacher/instructor. It is planned during curriculum development and aims to test skills that cannot be assessed through written exams alone. The main purposes of internal assessment are to integrate teaching and evaluation, and to assess qualities like attitudes, interests, and skills. It provides benefits like helping students study regularly, developing proper habits, and allowing teachers to identify weaknesses and diagnose students. However, it also risks subjectivity and misuse if not implemented carefully.