The global higher education landscape is fast evolving, demanding that universities equip students with critical knowledge and 21st-century skills. Daystar University (DU) 's switch from teacher-centered models to Problem-Based Learning (PBL) reflects this shift. PBL stresses critical thinking and real-world problem-solving, essential for today's interconnected world. The chapter examined the challenges and advancements of PBL implementation at DU using qualitative methods involving interviews with 30 selected informants and document analysis. Findings show that while PBL has been integrated across various programs, challenges like resistance to change, insufficient faculty training, and resource limitations persist. However, significant progress has been made, including adopting technology-enhanced tools, increased faculty collaboration, and a growing culture of innovation among students. The study recommends targeted faculty development, improved infrastructure, and stronger support systems to enhance PBL's effectiveness in fostering more profound learning experiences.