Challenge Based Learning (CBL) provides a promising educational framework for teaching social entrepreneurship, addressing the persistent gap between theoretical knowledge and practical implementation. Through a comprehensive analysis of existing literature and theoretical frameworks, this paper demonstrates how CBL’s seven key elements - authentic challenges, stakeholder involvement, interdisciplinary approaches, student agency, work and life skills development, entrepreneurial mindset cultivation, and impact focus - directly align with and support core social entrepreneurship competencies. The integration of Kolb’s experiential learning theory, Santos’ social entrepreneurship framework, and Rogers’ innovation diffusion theory provide a basis for understanding how CBL can enhance social entrepreneurship education. Evidence suggests that CBL particularly excels in developing three critical areas: (1) students’ ability to identify entrepreneurship and validate social opportunities through real-world engagement, (2) their capacity to build and manage multi-stakeholder collaborations, and (3) their competency in measuring and communicating social impact. While implementation of CBL is sometimes demanding, particularly related to resource allocation and stakeholder coordination, our analysis provides specific strategies for addressing these barriers through phased implementation and structured support systems. This paper advances both theoretical understanding and practical application of social entrepreneurship education by providing a comprehensive framework for curriculum design and implementation.