This paper presents the development and implementation of Problem-Based Learning (PBL) in an engineering thermodynamics course at Kettering University. In this project, the thermodynamics course was restructured as modules presenting practical applications first, whereas principles were introduced just-in-time and as encountered. Theoretical information was presented to support the understanding of knowledge as students applied inquiry-based learning. These modules were carefully designed to reflect traditional concepts but made more exciting as students discover the need for the laws and principles. The classroom format was interactive, cooperative and revolves around students needs. Formative and summative assessment tools were designed to examine the effectiveness of created modules.