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This study aimed to explore the perceptions and experiences of peer evaluation (PE) in group work (GW) among nursing students at the Faculty of Nursing and Health Sciences, Bethlehem University, Palestine in spring 2016. While previous studies have examined the importance of PE in GW in a variety of disciplines in higher education, researchers have not paid much attention to PE in the assessment of nursing students in Palestine. A qualitative approach was used on a sample population of third- and fourth-year nursing students (n=70) at Bethlehem University who had participated in PE in previous courses at least three times. Results revealed that participation in GW promoted the students' leadership skills, team spirit, self-confidence, and respect for others, while significantly contributing to their professional growth. The results also highlighted challenges to GW such as distributing assignments to groups and providing clear specifications for the group leader's role. Results also showed that the main challenges facing PE were the lack of objectivity, fairness, anonymity, and clear evaluation criteria, as well as the limited items in the evaluation forms. The study recommended the development of a faculty handbook containing guidelines for GW and PE, conducting training sessions for students, and encouraging all faculty members to use GW and PE routinely in their teaching practices.