Peer assessment in higher education can contribute to students' domain knowledge, engagement, critical thinking, and self-assessment skills. This qualitative study explored how peer assessment fits within the teaching practice of project management faculty as they prepare students to lead empowered project teams. A substantive grounded theory was generated from analysis of surveys, interviews and course documents to examine the positions, practices, goals, and outcomes of integrating peer assessment in their practice. Integration of peer assessment is promoted by a constructivist orientation, online teaching, and teaching adult learners. Project management educators engage in an active learning cycle of seeking support, puzzling, experimenting, and adapting their integration of peer assessment. Connections to theory, and implications for enhancing the integration and sustainability of peer assessment in project management education are discussed.