Purpose: The objective of this study was to identify the effects of problem based learning (PBL) combined with simulation on the basic nursing competency of nursing students. Method: A pretest-posttest design with a nonequivalent control group was used to examine the effects of problem based learning combined with simulation for 9 weeks in a group of 283 nursing students. The PBL group of 141 students participated in PBL classes with simulation, 4 hours a week for 9 weeks compared to control group of 142 students who received the usual fundamental nursing class. Results: The group that had PBL with simulation showed significant increases in problem solving and self-directed learning competency, although there were no significant changes in communication competency as compared to the control group. Conclusion: The findings of this study demonstrate that PBL with simulation for nursing students may increase problem solving and self-directed learning competency and suggest that utilizing this teaching-learning method may be beneficial as an effective nursing education strategy.