Observation of experienced teachers has always played an important role in teacher education. Traditional views of observation argue that through observing how teachers conduct their lessons, solve problems of classroom management, and interact with students, novice teachers can develop a repertoire of strategies and techniques which they can apply in their own teaching. However the significance of what is observed depends on the theory of teaching the teacher holds. In using classroom observation in language teacher education programs it is therefore necessary to go beyond a focus on techniques and strategies experienced teachers employ and to use observation as a way of collecting information that can be used to develop a deeper understanding of how and why teachers teach the way they do. In this paper, observation will be examined in terms of how it can assist both co-operating teachers (those who are observed) and novice teachers develop a reflective approach to teaching.