Mathematics anxiety is a prevalent problem in many K-12 classrooms, and if not appropriately addressed can cause lasting educational harm to students as they enter adulthood. Researchers suggest that the finality of traditional grades has increased mathematics anxiety in today's classrooms. The extreme weight of grades, such as determining participation in school events, scholarship awards, and further education opportunities is a significant contributing factor to the increased heightened stress. The purpose of this literature review is to address one factor that can decrease mathematics anxiety, the use of standards-based grading, which shows mastery or progress towards mastery on individual standards. The beginning of this review will provide an overview of factors that lead to mathematics anxiety, then move into a discussion about the differences between traditional grading and standards-based grading, then a review of the relevant research studies, and finally an analysis of those studies which drives a call for additional research on this topic. The hope for this review of literature is to encourage math teachers to incorporate standards-based grading into their classrooms to help reduce the negative impacts of mathematics anxiety in students.