Traditional engineering courses at tertiary level have been traditionally theory-based, supported by laboratory work, but there is now a world-wide trend towards project-based learning. In product development education, project-based learning is essential in order to integrate the disciplines of design, marketing and manufacturing towards the common goal of creating a new product. The process of development consists of a set of activities, tools and methods that are themselves evolving and improving with practice. A successful active learning course in product development education is presented in this paper as part of undergraduate engineering education, within the context of a fourth year course in New Zealand. The industry sponsored individual projects support active real-life learning and reflection. The paper presents ways in which active learning can be enhanced within the learning outcomes of a project-based paper. These methods can be adopted in educating engineering students of any discipline to better prepare them for their future careers. (Contains 1 figure.)