Students' inadequate 21st century skills are the outcome of teacher-centered learning activities. Previous studies have shown that collaborative inquiry learning improved their generic skills. This experimental research investigated the effect of Local Wisdom-Based ELSII Learning Model (LWB-ELSII) on students' problem-solving skills (PSS) and their communication skills (CS). Cluster random sampling was carried to select 56 preservice Islamic teachers at Islamic State University of Mataram as samples. The PSS Essay Test (PSET) and the Communication Skills Test (CST) were employed. The data were analyzed using Mann-Whitney U test and Spearman's rho correlation at significance level of .05. The results showed that: 1) there were significant differences in the PSS and CS between the experimental and control groups in favour of experimental group students, and 2) there was a positive and significant correlation between the two dependent variables. It is recommended that lecturers apply LWB-ELSII as an alternative solution in improving students' performance.