This study investigates the underlying mechanisms of Design Thinking and Project-Based Learning (DT-PBL) in engineering education through a grounded theory approach. Based on classroom observations and semi-structured interviews, four interdependent dimensions—self-confidence, reflective interaction, knowledge integration, and iterative refinement—were identified, forming a closed-loop learning ecology. The findings reveal that DT-PBL operates as a recursive, dynamic process: self-confidence drives participation, reflection deepens understanding, and iteration progressively transforms knowledge into actionable insights. Beyond generating project deliverables, DT-PBL cultivates reflective judgment, integrative thinking, and sustainable problem-solving competencies vital for contemporary engineering practice. This study contributes a theoretically grounded and pedagogically actionable framework for advancing DT-PBL implementation in higher education. © 2025 SEFI.
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