In the classroom, formative assessment has the power to enhance instruction and learning. In order to determine the requirements for teachers to use formative assessment effectively, this study reviewed the literature on the subject. The following research topic was attempted to be addressed by the review: What conditions must be met before a teacher can use formative assessment in the classroom? The review was carried out in a methodical manner. This review includes 54 studies in total. The findings indicate that three elements affect the adoption of formative assessment: (1) psychological factors (like social pressure), (2) knowledge and skills (like data literacy), and (3) social aspects (like teamwork). The prerequisites that have been identified can help guide teacher education programs and professional development initiatives related to formative assessment.