In the contemporary era, one of the primary objectives of education systems is not only to ensure that learners acquire knowledge, but also to enable them to develop competencies that allow for the effective application of this knowledge in real-life contexts. From this perspective, competency-based education (CBE) has gained particular relevance as an alternative to the traditional time-based instructional model. This article examines the theoretical foundations of competency-based education, its developmental characteristics, and modern implementation practices. The core principles and structural components of CBE are analyzed, and examples of its application within the United States education system are presented. In addition, the challenges encountered in the implementation of this approach, as well as its prospective opportunities, are explored. The analysis indicates that competency-based education makes a significant contribution to the establishment of a learner-centered, personalized, and equitable educational environment.