This paper describes research on the use of knowledge models (ontologies) for building computer-aided educational software in the field of control engineering. Ontologies are able to represent in the computer a very rich conceptual model of a given domain. This model can be used later for a number of purposes in different software applications. In this study, domain ontology about the field of lead-lag compensator design has been built and used for automatic exercise generation, graphical user interface population and interaction with the user at any level of detail, including explanations about why things occur. An application called Onto-CELE (ontology-based control engineering learning environment) uses the ontology for implementing a learning environment that can be used for self and lifelong learning purposes. The experience has shown that the use of knowledge models as the basis for educational software applications is capable of showing students the whole complexity of the analysis and design processes at any level of detail. A practical experience with postgraduate students has shown the mentioned benefits and possibilities of the approach.