This study focuses on the engineering program at CQUniversity, Australia that employs project based learning approach in undergraduate engineering course. The project based learning technique in engineering education is intended to expose students to something similar to real life as a professional engineer. This study provides a brief description of project based learning taking as a case study that involves the students' project in a group, requiring problem solving, decision making, investigative skills and reflection. The project includes teacher facilitation only rather than the teacher stipulating solutions. It is found from this study that the students can practice new learning habits through project based learning. With project based learning, students can think in original ways to devise solutions to real world problems and also students can acquire creative thinking skills by showing that there are many ways to solve the problem. The paper focuses on the framework of the course and the expected outcome of the course and presents the experiences in using project based learning in an engineering course of advanced dynamics (of a mechanical system) and also discusses the effectiveness of project based learning in contrast with traditional based approach.