Building iterative thinking in business education at the university level is essential for preparing students to thrive in complex and uncertain environments. The Marshmallow Challenge, a widely recognized experimental activity, serves as an effective tool to foster this skill by encouraging collaboration, creativity, and problem-solving. Business decisions often unfold in unpredictable situations, requiring individuals to embrace trial and error, iterate on ideas, and adapt to shifting circumstances. This dynamic process is at the heart of iterative thinking and plays a key role in developing essential 21st-century entrepreneurial skills. This work explores the impact of the Marshmallow Challenge on university students’ abilities to navigate ambiguity and uncertainty. The results suggest that engaging students in such hands-on activities enhances their entrepreneurial mindset and fosters a more adaptable approach to problem-solving. This insight highlights the value of integrating interactive learning experiences into business education, inspiring educators to reconsider how they design and deliver their curricula.

Keywords: Higher education, skills development, undergraduate education, university, interactive learning.