Purpose: Higher education institutions (HEIs) frequently overlook the importance of encouraging creative thinking in students. A review of the prevailing practices in a fully online tertiary distance education (DE) institution revealed a lack of learning activities that foster creativity. The study aims to find out whether the creative collaborative group project is a feasible, effective and acceptable learning activity for fostering creativity in students of a fully online graduate-level DE course. Design/methodology/approach: Seven groups of five to six graduate students each had five weeks to conceptualize, prepare and deliver a creative collaborative group project on lifelong learning using key concepts learned from the course. Findings: All groups submitted well-crafted creative projects within the given time frame. Reflections on their experience positively correlated with known outcomes associated with creative skills. Students valued the experience and had a better understanding of the concepts. These support the feasibility, effectiveness and acceptability of the project for fostering creativity in a fully online DE institution. Research limitations/implications: The feasibility, effectiveness and acceptability may vary in different contexts; future iterations in the same and/or other courses are recommended. Practical implications: The creative collaborative group project is a feasible, effective and acceptable strategy for fostering creativity in online distance education. Social implications: Creativity can be enhanced through appropriate online collaborative learning activities. Originality/value: The study adds to the body of literature on the use of creative collaborative group projects to foster creativity in HEIs.