This paper examines the issues and challenges in the implementation of service-learning in undergraduate business education. It also provides an assessment of the students' learning efficacy and outcomes over time through the service-learning participation. Service-learning is a pedagogical approach that integrates academic learning and community service. It involves partnership among various stakeholders like students, faculty members, community members, and social agencies. There are challenges for various stakeholders to implement service-learning in business courses. The findings of a survey of a group of business students participated in service-learning projects show that the students have an increased level of sense of social responsibility, ethical and moral behavior after the participation in service-learning projects. Nevertheless, no significant difference is found for learning outcomes between the pre-test and post-test. The paper addresses the critical success factors and constraints of the integration of service-learning and provides recommendations for designing experiential service-learning projects in business education. (Contains 1 table.)