This chapter describes a new assessment design approach called scenario-based assessment (SBA) and explains how it can be used to measure the reading ability of school-aged children in the current context of high standards. It delineates two types of SBAs in reading, the Global, Integrated Scenario-Based Assessment (GISA) and English Learner Formative Assessment (ELFA). The chapter explores evidence to support the validity arguments for GISA, it is important to note the added value of the Reading Inventory of Scholastic Evaluation (RISE) components battery, which is a computer-delivered non-scenario based assessment. It focuses on illustrating concrete examples of scenario-based tasks using two research and development projects, GISA and ELFA. The chapter summarizes a few key elements to consider in designing scenario-based reading assessments for both native English-speaking and EL students. It addresses the primary goal of reading assessment innovation by the use of SBAs.