Training Packages form the basis upon which practitioners in the Vocational Education and Training (VET) sector in Australia develop their pedagogical processes. As workplaces adapt their practices to compete globally, demand for skilled and knowledgeable workers places pressure on institutional training providers such as TAFE to develop training programs that support the acquisition of higher order thinking skills in graduates. Using a competence based framework as a backdrop, the research centres on the notion of the place of Project Based Learning in a Training Package context. The research proposes that learning through projects is an effective means of integrating Training Package outcomes with an instructional model that engages learners in independent, flexible and reflective learning. The research was conducted retrospectively from a case study of an AQF Level 6 Textile, Clothing and Footwear Training Package Program at RMIT University TAFE. An Action Research approach underpins the investigation, resulting in the profiling of teaching, learning and assessment as areas in need of further examination. These defining themes are explored in the context of the Project Based Learning model developed at RMIT, with consideration given to the potential for broader application. The discussion concludes with a theoretical review of the new understandings of pedagogy. The study aims to establish that a constructive alignment exists between the behaviourist approach of Training Packages and the more constructivist theories behind Project Based Learning; rendering it a suitable instructional model that meets the needs of 21st century learners.