Background: The identification, situation, background, assessment and recommendation (ISBAR) is a handoff tool that plays an important role in transferring responsibility and accountability in patient care from outgoing shifts to incoming shifts. Many researchers believe that handoff is very important among nurses. Nurses had the responsibility to ensure patients' correct information which were shared among themselves during handoff. It also delivers the best patient care by improving the transfer of clinical information globally and systematically. Purpose: The aim of the study is to determine nurse's perception and compliance on ISBAR tool for handoff communication in tertiary hospital, Dammam. Method: A cross-sectional descriptive study was conducted in oncology unit at tertiary hospital, Dammam, Saudi Arabia. Total sample size was 70. Questionnaire was the instrument tool in the study to measure nurse's perception and compliance on ISBAR tools. Result: The overall perception mean score achieved was 38.64±1.455 and compliance score was 7.73±0.588. This showed nurses had good perception and compliance on ISBAR tools and none of them had poor perception and compliance regarding the same. There was statistically significant relationship (P=0.000) between perception and compliance on ISBAR tools. Conclusion: ISBAR is reliable and effective handoff communication tools to promote patient safety. However, continuous education should be maintained to ensure all nurses competent in ISBAR tool. Further studies will be necessary to evaluate relationship between nurses' perception and compliance on ISBAR tool.