Nepal, Bhutan and India face serious development challenges, compounded by shortage of workforce trained with modern pedagogical methods. Solving such challenges requires transdisciplinary engagement with societal partners. Problem Based Learning (PBL) methodologies provide an effective way to educate students in systems thinking and deal with complexity. But most technical Higher Educational Institutions (HEIs) in South Asia do not offer such PBL based courses. Educators are not trained in using PBL methods, especially to deal with complex development goals. In contrast, EU HEIs such as Aalto and TU Delft focus on university-wide efforts for global inclusive development. Through this project, the EU HEIs aim to develop a leading practice for global PBL projects. This project addresses a strategic bottleneck: preparing graduates for challenging work, holistic problem analysis and interdisciplinary knowledge creation in real settings. The two layers of cooperation include 1) training of faculty and the development of PBL methodologies, and 2) joint piloting of PBL cases involving student teams. The project will establish PBL into the curricula of partner HEIs in Nepal and Bhutan. The EU HEIs each take a specific role in the project: TUDelft with entrepreneurship education and online education, KTU with data gathering and monitoring of project results, and Aalto in overall project management and emphasis on global sustainability issues. IISc Bangalore and IIT Bombay will develop a regional network of PBL specialists and disseminate best practices through teacher training and policy influencing activities in India. All HEIs will contribute to the student case pilots. Dissemination will be carried out through publications, seminars, and creation of a regional PBL network in South Asia. After the end of the project, PBL courses will continue in all the ten participating HEIs.