Project-Based Learning (PBL) has emerged as a powerful pedagogical approach to enhance active learning and develop essential competencies in higher education. In the industrial engineering department at the Federal University of Rio Grande do Sul, undergraduates are expected to be capable of designing sustainable solutions that meet the demands of different stakeholders simultaneously, making requirement engineering competence essential. This study investigates the effectiveness of PBL in developing Requirement Engineering (RE) competence in the Design of Sustainable Project-Service System Solutions (DSPSS) course. That course was introduced into the program in 2021 and employs PBL to engage students in real-world challenges proposed by partner companies, focusing on integrating sustainability with product-service systems. Through self-assessments, course evaluations, and industry feedback, this research assesses the adoption of PBL for developing problem-solving, requirement analysis, collaboration, and communication competencies. The findings indicate that PBL effectively enhances students' technical and transversal competencies, bridging the gap between academic learning and industry demands. Furthermore, the study highlights the importance of continuous feedback and industry collaboration in optimizing learning outcomes. These results contribute to the ongoing discussion about the role of active learning in engineering education, reinforcing the value of PBL to developing future-ready engineers qualified in RE competencies and sustainable innovation awareness for better decision-making processes.