BackgroundAfter the Corona pandemic, medical education has shifted to virtual education, but there has been limited time and possibilities for empowering faculty for this purpose. Therefore, it seems necessary to evaluate the quality of the provided training and provide feedback to the faculty in order to improve the quality of training. The purpose of this study was to investigate the effect of teacher formative evaluation by peer observation method on the quality of virtual teaching of basic medical sciences faculty.MethodsIn this study, seven trained faculty members observed and based on a checklist evaluated the quality of 2 virtual sessions taught by each faculty of basic medical sciences, and provided them feedback; after at least 2 weeks, their Virtual teachings were again observed and evaluated. The results before and after providing feedback were compared through SPSS software.ResultsAfter intervention, significant improvements were observed in the average scores of “overall virtual performance”, “virtual classroom management” and “content quality”. Specifically, there was a significant increase in the average score of “overall virtual performance” and “virtual class management” among female faculty, and the average score of “overall virtual performance” among permanently employed faculty members with more than 5 years of teaching experience, before and after intervention (p < 0.05).ConclusionVirtual and online education can be a suitable platform for the implementation of formative and developmental model of peer observation of faculty; and should be considered as an opportunity to empower and improve the quality of the faculty’ performance in virtual education.Supplementary InformationThe online version contains supplementary material available at 10.1186/s12909-023-04331-z.