The Team-Based Learning (TBL) teaching strategy has been used broadly in many disciplines. It is a learner-centered learning pedagogy with benefits similar to those of Problem-Based Learning while TBL is more cost-effective. However, little is known about the application and effects of TBL in nursing education. The purposes of the study were to apply the TBL method in the Fundamental Nursing course and evaluate its effects on students' learning outcomes. The research used one-group pre-posttest design with the intervention of TBL pedagogy. Using convenience sampling, participants were 163 first-grade nursing students who enrolled in the course and completed and returned the questionnaires (98.19% of response rate). The Self-Directed Learning Instrument, Classroom Engagement Survey, Value of Teams, and academic performance were used to evaluate students' learning outcomes. The results indicated that TBL significantly increased students' abilities of self-directed learning, classroom engagement, and academic performance. The findings demonstrated that TBL is an effective pedagogy with cost-effective concern. The TBL can be considered for broader application in nursing education.