Traditional grading relies heavily on the summative assessment typically at the end of a term, which creates anxiety and stress among students and learners. Additionally, grades or marks in traditional grading may not be reflective of learning or mastery or competence. Furthermore, traditional grading also creates inequity in STEM education by marginalizing students based on their background, socioeconomic status, and other biases. In contrast, Alternative grading focuses on learning outcomes, does not offer typical letter grades/marks and thereby reduce stress and anxiety among students. By defining standards, providing helpful feedback, indicating progress, and allowing reattempts without penalty, enable alternative grading to support active learning, assessment while remaining inclusive in STEM classrooms.  Various types of alternative grading can be integrated in STEM classrooms based on specification, mastery, competency, contract and ungrading. Such approaches of implementing alternative grading are suggested to enable transformation of equity in diverse STEM classrooms.