The objective structured clinical examination has been considered a modern type of examination for assessment of clinical skills within nursing education. The aim of the study was to compare between the performance of students regarding to their scores and grads by using objective structured clinical examination (OSCE) and traditional clinical examination (TCE) and to investigate student's perception about OSCE. A quasi-experimental study was used 100 student's scores and grads firstly as a control group (TCE) then as a study group (OSCE) at nursing college in Princess Nora Bint Abdul Rahman University then the OSCE feedback questionnaire was completed by the student immediately after OSCE exam. The results of the study indicate that there were statistically significant differences between two groups for the practical examination score with accepted normal distribution curve for the student's grads. OSCE was considered as a fair examination method by 65% students and 69%of them felt it provides a true measure of essential clinical skills. Students preferred OSCE a method of assessing clinical competences and considered it a more valid and reliable method of examination. The study recommended that OSCE as a tool should be applied to evaluate clinical competence among nursing students.