Nonaka's model of knowledge creation can provide guidance for designing learning environments and activities. However, Bereiter is critical of the model because it does not address whether understanding is deepened in the process of socialization, externalization, combination and internalization. To address this issue of understanding, this paper proposed a framework that synthesizes the basic phases of problem-based learning with Nonaka's model. This paper reports on a study investigating if a course designed based on this authentic framework can help to stimulate knowledge creation based on deepening understanding. Several types of data were collected in this design-based research, namely: reflections by the participants and instructor; group discussions; student-created artifacts; and documents, records and artifacts that reflect the overall design of the course. The findings suggest that the participants demonstrated advancing understanding amidst knowledge creating conditions and processes consistent with Nonaka's model. Other key implications are also discussed.