In recent decades, under the influence of technological advancements, evolving student demographics, and shifting societal demands, the landscape of higher education has undergone significant transformations. Among numerous learning approaches, Flipped Learning (FL) has gained particular prominence due to its ability to enhance students' performance through active engagement and self-directed learning. Another teaching and learning linked to indicators of students' academic achievements is Peer-Assisted Learning (PAL). However, previous research on PAL remains scarce. To fill this gap in the literature, the effects of the integration of Peer Counseling (PC) activity into PAL on both academic and personal development within the flipped classroom setting over time were investigated in the present study. The study participants were counseling students (n = 91), including 60 students in the PAL-integrated flipped classroom and 31 in traditional classroom used as the control group. The results revealed that, over a 14-week period, PAL-integrated flipped classroom led to improvement in students' Solution-Focused Thinking (SFT) skills, self-efficacy, and effective counselor characteristics, with medium to large effect sizes. The results also indicated the positive effect of PC on students' counseling performance and achievement scores. These findings offer important implications for creating a collaborative learning environment. The paper concludes with a discussion of challenges typically associated with the implementation of flipped classroom in higher education.