Peer observation of teaching is seen as a supportive and developmental process for improving the quality of teaching in universities. Evidence is emerging that the process of observing is just as if not more valuable than being observed and given feedback. In this study lecturers completing a Foundations program in university learning and teaching were interviewed about their experience of participating in a reciprocal peer observation exercise. The benefits for observers include learning about a new strategy and enhancing their confidence to try this strategy in their own teaching. Receiving feedback was also perceived to be useful but not more beneficial than watching a peer teach. We discuss implications of our results for units and institutions planning to implement peer observation as part of a strategic approach to improve the quality of learning and teaching.