Background: Learning and mastering the skills required to execute physical exams is of great importance and should be fostered early during medical training. Observing peers has been shown to positively influence the acquisition of psychomotor skills. Purpose: The current study investigated the influence of peer observation on the acquisition of psychomotor skills required to execute a physical examination. Methods: Second-year medical students (N = 194) learned the neurological physical examination for low back pain in groups of three. Each student learned and performed the physical examination while the other students observed. Analyses compared the impact of the quantity and the quality of observed performances on students’ learning of the physical examination skills. Results: Students benefited from observing peers while they executed their examination. Moreover, observing a high-performing peer increased the acquisition of physical examination skills. Conclusions: Results suggest that group learning activities that allow students to observe their peers during physical examination should be favored.