This licentiate thesis is focusing on conditions for teaching and learning in a project based vocational education in a Swedish upper secondary school.  To address this topic the aim is to increase the understanding of opportunities for teaching and learning provided in a project-bases vocational educational and training. From this aim, following research questions is addressed through article I as: (1) What kinds of competence are the students able to develop in a PBLE? (2) In what ways do the developed competence and vocational skills relate to the specific course syllabuses? (3) How is the students’ vocational competence constituted? And through article II as: How do teachers view PBVET as (a) framing possibilities for their practice, (b) affecting students learning, and (c) presenting challenges in this learning environment?  A methodological approach that involved stimulated recall inspired interviews that were based on field notes was used in the empirical gathering and was found highly useful. The theoretical approach is based on activity theory according to Vygotskij, Leontiev and Engeströms thoughts and from Ellströms idea of learning.  The result indicates that different activities are affecting the teachers’ opportunities for teacher guidance as well as their ability to engage students into tasks. For the students to develop vocational skills a slow progress in the building process is affecting their ability to perform tasks. The vocational competences that they develop are mainly set as a reproductive learning that in some easy tasks can move to a higher, re-productive learning. As for the relationship between teacher guidance and students ability to develop vocational skills, the hierarchic structure identified in this study indicates that the educational system is overridden by the production system that sets the outer frame for the opportunities that are provided in this educational setting.