The introduction of project-based learning into university engineering programs has been shown to positively benefit students that prefer a hands-on experience and give future employers assurance that recent graduates have the tools to handle real-world problems as opposed to theoretical situations. Enhancing the engineering self-efficacy of students, recent graduates and seasoned engineers is made possible through the solution of complex, open-ended problems typically found in engineering design. A high engineering self-efficacy, in turn, positively reflects a person's perception of their complex problem-solving capacity which is critical throughout the design process. The decision to either work virtually with a team or onsite with group members nearby may also further influence self-efficacy and, ultimately, the designer's success. This raises the question explored in this study: Will a design challenge impact engineering self-efficacy equally for online and in-person participants? Two groups engaged in a design challenge to develop a mechanism meant for drone applications, where one group designed and tested their solution in-person, while the other group sent design plans to a third-party for fabrication and testing. Participants filled out a prototype engineering self-efficacy scale before and after the challenge, revealing a significant difference between these two modalities. The small sample size is noted as the cause for inaccuracies and surprising findings. Guidelines for methodology implementation in a larger scale study are included. / Master of Science / In project-based learning courses, students work in groups to make a prototype or other solution to a stated problem, which are helpful for building student confidence in problem-solving, critical thinking and, especially, engineering skills. This confidence translates to believing that carrying out a specific task will lead to success with little-to-no feelings of fear or failure. This generally describes "self-efficacy," and it can apply to any profession. Traditionally, hands-on projects are done in person, where an exchange of ideas is clear and any problems can be handled immediately. However, with schools closed due to the COVID-19 pandemic, these courses had to shift online, leading some to believe that students would not receive the same level and quality of engineering education. Online learning has been around for over 30 years and studies show that students learn just as much, if not more and better, online than sitting in a classroom. Can the same be said for taking part in an engineering project over the internet? Two groups designed a prototype drone attachment, where members of one group worked side-by-side to build and test their solution, while members of the other group worked online and sent files and assembly instructions to a third party. Each participant also filled out a questionnaire before and after the challenge to track their engineering self-efficacy. The limited data led to the conclusion that there is a noticeable difference between the two project completion methods, most likely caused by a low number of participants. The lessons learned from this study were used to create guidelines for a larger-scale study.