Challenge-Based Learning (CBL) is an innovative approach in higher education that aligns learning experiences with real-world challenges. It emphasizes active problem-solving and critical engagement, preparing students for the complexities of the labor market. A crucial component of this process is constructive conflict, which, when managed effectively, fosters critical discussions, enhances communication skills, and promotes leadership and teamwork. This paper explores the pivotal role of instructors in facilitating constructive conflict within CBL, ensuring that students learn to navigate disagreements productively. Additionally, it examines the importance of institutional support in fostering an open feedback culture that bridges the gap between academic learning and professional demands. A key strategy highlighted in this study is Appreciative Inquiry, a strengths-based framework that transforms conflict into an opportunity for innovation and collaboration. By shifting the focus from conflict avoidance to leveraging diverse perspectives, Appreciative Inquiry enables students to develop essential workplace competencies such as problem-solving, adaptability, and interdisciplinary teamwork. By incorporating scholarly perspectives, this paper underscores the necessity of integrating structured conflict resolution, Appreciative Inquiry principles, and leadership dynamics into higher education curricula to equip students with the skills necessary for professional success. This approach ensures that students graduate not just as subject-matter experts but as engaged, innovative professionals capable of driving positive change in their respective fields.

Keywords: Challenge Based Learning, Constructive Conflict, Appreciative Inquiry.