Objective: To develop an instrument for assessing the ethical sensitivity of freshly graduated dentists. Methods: This instrument development study was done at Sardar Begum Dental College, Peshawar, Pakistan, from September 2014 to April 2015. The instrument developed was the Dental Ethical Sensitivity Scale in accordance with the guidelines for the development of educational instruments. Data was obtained from freshly graduated dentists through the instrument containing vignettes related to three domains of ethics; beneficence, autonomy and confidentiality. Content validity index and Angoff's method were used to determine the validity and cut-off passing score respectively. Reliability analysis comprised internal consistency and test re-test. Results: Of the 138 house officers approached, 107(77%) responded. Of them, 37(34.5%) were males and 70(65.4%) were females. The overall mean age was 23.7±1. 1 years. Overall, 51(47.6%) subjects were ethically sensitive whereas 50(46.7%) were partially sensitive and 6(5.6%) were insensitive. The CVI for the instrument was 0.8; cutoff score was 83%; internal consistency was 0.63; and test re-test reliability was 0.71. Relation between ethical sensitivity, gender and class attendance of the participants was insignificant (p>0.05 each). Conclusion: Dental Ethical Sensitivity Scale was found to be effective in providing a valid and reliable as ses sment instrument for m eas uring ethical sensitivity of fres hly graduated dentists.