This study aims to explore the perceived benefits of three-way observation on the focal areas of objectives of the activities, error-correction techniques, and group-work in an upper-intermediate class in Bilkent University School of English Language. The data was collected through five classroom observations, six post-observation reflection sheets, five focus-group interviews with the students, ... [Show full abstract] and five post-observation interviews with the observer. A total of 15 upper-intermediate level students, one teacher, and one observer v were involved in the study. The data was analyzed qualitatively and with the use of descriptive statistics. The findings reveal that the perceptions of the students, teacher, and observer on the focal areas show variability in terms of quantity and quality. It was also discovered that student feedback reveals more detailed information about each focal area and that each perception has its own value and should be taken into consideration by the teacher, observer and students. In this study, the researcher formed a two-step three-way observation model. According to this model, the teacher transfers the information gathered from student interviews to the observer. Based on this information, the observer presents suggestions to the teacher by creating solutions to an existing problem, developing ideas related to classroom activities or increasing the effectiveness of teaching and learning processes in a class.