The present invention is embodied in a separator sheet handling assembly 10 that includes a lifting assembly 20 adapted to receive a pallet 12 containing a stack of separator sheets 14. The lifting assembly 20 positions the stack of separator sheets 14 into a predetermined location where a feed assembly 30 engages a separator sheet 16 positioned at the top of the stack of separator sheets 14. The feed assembly 30 removes the separator sheet 16 and transports it to a test assembly 50 where the separator sheet 16 is monitored for a particular characteristic such as cleanliness or structural integrity. The separator sheet 16 is delivered to a first storage assembly 60 if the separator sheet 16 has the particular characteristic, or a second storage assembly 70 if the separator sheet 16 does not include the particular characteristic.