In this chapter, a linear process model is proposed for outcome-based education. Then an agile-based approach is presented that aims to integrate the Instruction design and student assessment to improve the quality of design and delivery. An agile process model suitable for virtual learning environments is proposed. The agile project management artifacts that include a content story, test plan, etc. are being used in the education domain. There is a need for human interaction in the teaching and learning process to improve the outcomes. The feedback generated after the student assessment process will help in improving the process of content designing and delivery in subsequent increments. The proposed agile model for the virtual learning environment is adapted for a graduate course offering. Based on the continuous assessments and feedbacks, various instructional methods are used for the delivery of the course. The results show that there is an improvement in student's grades, learning outcomes, and there is a considerable reduction in failures and dropout rates.