Competency-Based Assessment (CBA) has emerged as a transformative approach to educational evaluation, emphasizing the demonstration of knowledge, skills, attitudes, and professional competencies rather than traditional examination performance alone. As educational institutions increasingly adopt competency-based education frameworks, assessment systems must evolve to accurately measure learner mastery and readiness for real-world applications. This study examines various competency-based assessment models and their impact on student achievement, learner engagement, skill development, and educational quality. A mixed-method research design involving 850 students and 150 educators from higher education institutions was employed. Quantitative findings indicate that competency-based assessment significantly improves learner engagement, self-directed learning, critical thinking, and professional readiness. Qualitative analyses highlight the importance of authentic assessment, continuous feedback, and performance-based evaluation. The study proposes an integrated competency-based assessment framework designed to support effective measurement of learner outcomes and enhance educational effectiveness.