In the modern health care environment, professional nurses are required to respond to dynamic, complicated situations that require skills in problem solving, professional knowledge, decision-making ability, and group collaboration. Problem based learning (PBL) is a constructive teaching method that has positive learning outcomes. Yet no study has thus far examined the critical components that makes PBL work. This literature review will outline the origin of PBL, the characteristics that make PBL work, the advantages of PBL, the theoretical underpinnings of PBL, and the limitations of PBL. We researched books and databases including Academic Search, ERIC, EBSCOHost, PsychINFO, PubMed, MEDLINE, and CINAHL. This review identifies the components that make PBL work. Incorporating these components in the practice of teaching will lead to better learning outcomes.