The integration of the Discourse Grammar Cloze Test (DGCT) into the Chinese Senior High School Entrance Examination (SHSEE) has added a new dimension to English language assessment, challenging students to apply grammar within a contextual framework. This study examines the impact of content familiarity, text readability, and test format on DGCT performance among 186 EFL ninth-grade students. Results indicate that these factors significantly affect performance, with notable variances across proficiency levels. Analysis of common error types further elucidates the challenges students face, providing insights for pedagogical strategies aimed at improving DGCT outcomes in English education.