In an undergraduate programming class taught at Nanyang Technological University, Singapore, students (N=243) were given an opportunity to grade reports submitted by their peers. 10% of all students participated in peer grading and were satisfied with the grade given to them by peers (i.e., this group did not use instructors’ resources). 13% participated in peer grading, updated their reports based on peer feedback, and submitted to a course tutor for final grading. We have shown that even though students who participated in peer grading and updated their reports achieved higher scores, but it happened because they were stronger students to begin with. At the same time, scores of students who participated in peer grading and did not re-submit their reports to an instructor were not lower than average scores. Thus peer grading can be recommended in teaching programming classes as a strategy that reduces instructors’ workload while not jeopardizing students’ learning.