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Summary Background Direct observation of patient encounters is a key component of evaluating residents during training, but there are scarce data on the various methods of observation. Aim To implement a novel method for direct observation of out‐patient encounters via a one‐way mirror in an internal medicine resident practice, and to assess the feasibility and acceptance of this method. Methods Each selected resident–patient encounter was directly observed by a preceptor through a one‐way mirror. The preceptor provided feedback to the resident at the conclusion of each encounter. A post‐visit survey assessed resident satisfaction and comfort with this method of observation. Results Using a one‐way mirror was a feasible method of observation. Fifty residents had a clinic visit that was directly observed, and 42 (84%) completed the post‐visit survey. Residents reported that they preferred direct observation through a one‐way mirror compared with other methods, including videotaped encounters or having a preceptor physically present in the room. They also felt that having a preceptor observing through the one‐way mirror had no negative effect on the clinic visit. Direct observation of patient encounters is a key component of evaluating residents Conclusions Direct observation through a one‐way mirror is a viable method in the out‐patient setting, and might be preferable for evaluating certain skills.