Problem-based learning has great potential for management education. Placing students in a problem-centered environment may help bridge the gap between theory and practice. One important but underdeveloped issue for problem-based learning is the context design of the problem-solving situation. This article's purpose is to develop a framework for designing the context for problem-based learning in management education. Background information is presented for problem-based learning, situated cognition, and the organization, leading to the development of such a framework. Cases are presented that illustrate the framework's use, and learning outcomes are discussed. (Contains 2 tables.)