Dictation is an effective means of FL teaching as well as teaching evaluation. In order to bring its role into full play, it is necessary to put more effort into its theoretical study. Based on an analysis of some common errors made in dictation, coupled with the authors years' of experience in FL teaching and testing, the present paper attempts to explore the major aspects of dictation—its function, nature, and psychological processes, and puts forward some suggestions on the teaching of dictation.