This paper describes the impact of the project-based learning (PBL) approach on learning and teaching physics from the perspective of pre-service elementary school teacher education students and an instructor. This approach promoted meaningful learning (mainly in the scope of projects), higher motivation, and active involvement of students in learning during the entire course. It improved students' attitudes towards learning physics, reducing fear, and increasing their self-efficacy and enjoyment of learning. This approach developed essential learning and collaborative skills, and strengthened interpersonal and intercultural interactions among all. Implementing PBL raised several challenges: the tension between the quality of learning and the scope of the course content and the necessity to combine a variety of teaching methods to meet students' learning needs. The paper describes advantages and difficulties from the perspectives of both students and the instructor.