To be successful in any field, one needs to have good decision making, effective critical thinking and problem-solving skills. The skills an individual possess not only helps him/her to earn his/her livelihood but also aids in the development and progress of the whole nation. So, there is an urgent need of integrating our traditional courses with skill development modules to enhance the efficiency of the young population and help them to be successful in their careers in future. Some basic skills like communication, creative thinking, self directed learning and problem solving are not only needed by an individual during course of his study or a job but also needed in day to day life to cope up with real life problems. One such method which can help in enhancing the skills and knowledge during school, college as well as at workplace is problem based learning; and if students are imparted education and trained for various skills right from the school through problem based learning, the concept and understanding pertaining to school curriculum and real life situations will be long lasting and concrete. The present paper critically reviews the studies related to development of skills through Problem Based Learning.