Abstract: The purpose of this study was to evaluate how the New Zealand style of problem based learning was developing students' understanding and integration of knowledge. The 'pure' problem based learning process has been adapted to move students gradually from teacher direction to taking responsibility for their learning. Two cycles of an action research method were used, involving 4 lecturers and 17 students. Data was collected both quantitatively and qualitatively over a 16-week period. Findings indicated the importance of: explaining the purpose and process of problem based learning; communicating in detail the role of both students and lecturers; keeping communication lines open; addressing timetabling issues and valuing this method of learning for nursing practice. Implications for nursing education are addressed.