Peer assessment has been proven to improve learning for both the observer and the observed. One dimension of peer assessment that has been given little attention in the context of physical education teacher education (PETE) is the tension that exists when peers give feedback on each other's work. In this paper, we report on Swedish preservice teachers' (PST) views on peer assessment used in PETE school placements. Our findings reveal four mechanisms of peer assessment assigned value in PETE: (i) building social relations, (ii) making 'what to learn' visible, (iii) giving correct feedback, and (iv) handling sensitive and gendered comments. Inspired by Bourdieu, we discuss learning potentials and complex challenges with peer assessment, where the combination of social capital and physical capital decides what is possible to say and to whom when peer assessment is used in the PETE school placement and in school physical education (PE).