This research involves the development, design, implementation, and navigation control of an advanced comeback Can-Sized Satellite (CANSAT) that will be launched to an elevation of about 725 m using an amateur rocket from the ground surface of a Can-Sized Satellite (CANSAT). The Can-Sized Satellite (CANSAT) is a component of a project that was developed for the NASA CANSAT Competition 2021–22. We have used Problem-Based Learning (PBL) initiative allowing students with different engineering backgrounds to work together on a real-world project. Through this program which was 11 months long and includes the phase from the making of PDR, CDR to final launch where students were able to use their technical skills to design, construct and develop a working Can-Sized Satellite (CANSAT) system. This study also explores the transition from a traditional classroom environment to an online PBL environment using Can-Sized Satellite (CANSAT) kits the feedback, benefits, and challenges of the project are presented, and students find it interesting and rewarding due to its interdisciplinary nature. The study also highlights the challenges and difficulties encountered and the solutions developed by the students and facilitators to overcome them.