The purpose of this research was to examine how learning space design and implementation of an active learning pedagogy based on the 5E Instructional Model influence university faculty's teaching practices and students' engagement. Faculty Fellows were recruited from a public, medium-sized university in the United States to teach courses, typically taught in a traditional classroom setting, in a new Active Learning Center (ALC) classroom. The classroom was funded by a Steelcase® Education Active Learning Center Grant that provided innovative and dynamic classroom furnishings and technology that allowed mobility and flexibility for both instructors and students. Quantitative and qualitative data were collected concurrently in this study. The quantitative analysis results indicated that the ALC learning experience significantly improved students' class participation and cognitive attentiveness, but had no effect on improving their meaningful processing of new information. The qualitative analysis results, while providing new insights into the quantitative findings, revealed the faculty fellows' changes and weaknesses in teaching practices and the mechanism of the ALC in supporting active learning. Implications of these findings and directions for future research are discussed.