Currently, there are a large number of higher education institutions transforming their traditional educational approaches to PBL. In order to address the challenges for PBL implementation for a university, it is quite necessary to investigate how the managers and staff members interpret PBL in practice. Through the exploration of a university which is in the process of transforming its traditional educational paradigm to PBL, we note that there is a lack of unified understanding of what PBL is at the university. Several different PBL interpretations emerge and some of them are quite inconsistent with, or even contradictory to each other, which further pose significant challenges to the university when implementing PBL. It should be acknowledged that the diversification of PBL interpretation is unlikely to avoid at a university. The diversity of PBL interpretation would create large tensions at a university, but it also points out new possibilities for the university.