Internationally there is a need for research that focuses on STEM (Science, Technology, Engineering and Mathematics) education to equip students with the skills needed for a rapidly changing future. One way to do this is through designing engineering activities that reflect real-world problems and contextualise students' learning of STEM concepts. As such, this study examined the learning that occurred when fifth-grade students completed an optical engineering activity using an iterative engineering design model. Through a qualitative methodology using a case study design, we analysed multiple data sources including students' design sketches from eight focus groups. Three key findings emerged: first, the collaborative process of the first design sketch enabled students to apply core STEM concepts to model construction; second, during the construction stage students used experimentation for the positioning of lenses, mirrors and tubes resulting in a simpler "working" model; and third, the redesign process enabled students to apply structural changes to their design. The engineering design model was useful for structuring stages of design, construction and redesign; however, we suggest a more flexible approach for advanced applications of STEM concepts in the future.