This study determines the effect of class-wide peer-assisted learning strategy (CWPALS) on students’ academic performance on the use of automotive diagnostic tools in colleges of education in North-east, Nigeria. The rational of the study was that CWPALS supports collaborative learning that encourages partnership among peers with students as teachers and teachers as facilitators of learning. The study employed true experimental Pretest posttest equivalent research design. A sample size of twenty-four (24) NCE III students participated in this study. 12 students each were assigned as experimental and control group. The experimental group was designed to promote class-wide peer assisted learning, where deliberate opportunities are provided for students to act as teachers and teachers as facilitators. An automotive diagnostic tools assessment instrument adapted from NPOWER/NADDC was used for data collection. The assessment comprises of 30-items that measure the extent of students’ performance in using automotive diagnostic tools The instrument has a reliability of 0.81 calculated using Cronbach alpha. T-test was used for the analysis of the data using SPSS software. The findings of the study reveals that here was a significant difference in the student’s academic performance in favour of the experimental group. Based on this finding, the study recommends that training should be conducted for lecturers of automobile technology in FCE (T) in north-east, Nigeria should imbibe the use of CWPALS in teaching the use of automotive diagnostic tools.