This systematic literature review analyses nine research articles about formative assessment and feedback practices in the European EFL context. The aim is to explore previous research about how teachers and students in EFL education employ, process and experience feedback in both oral and written forms. The systematic literature review also highlights challenging areas of formative assessment practice in the research articles in order to offer a backdrop for prospective development of formative assessment procedures in the Swedish EFL context. The reviewed research covers formative assessment practices within the European EFL context of lower and upper secondary education in Sweden, Norway and The Czech Republic, Spain and Greece. The methods of the reviewed research articles included for example classroom observations, questionnaires, and interviews with teachers and students. The results of this systematic literature review indicate that the majority of the teachers in the research articles provided formative feedback which enhanced learning, but that feedback provision depended upon the schools’ assessment culture. The systematization also highlights the fact that teachers in some of the research articles were changing to a more formative assessment culture which promoted learning and peer assessment activities. Regarding challenging areas of formative assessment practices, the review showed that students might find feedback difficult to understand. However, the students improved their language skills if they were able to understand and given time to process the formative feedback on oral and written assignments. The literature review highlights that despite the strong promotion of formative assessment in Sweden, there is a gap in local empirical research showing how it happens. Thus, more empirical research about formative assessment in Sweden is needed.