This study investigated the effects of contextual digital game-based learning (DGBL) intervention combined with process-based feedback on nursing students’ mastery of medical terminology. Seventy-five students from a four-year nursing program at a university of science and technology participated in a single-group pretest-posttest design. After two weeks of self-directed digital study and a pretest, students engaged in four weeks of DGBL featuring non-player character (NPC) challenges, score-based feedback, and team competitions. Remedial instruction, including error analysis, was offered in Week 5, and a posttest followed in Week 9. Findings showed a significantimprovement in medical terminology scores, rising from 72.81 to 79.92 (p = .002). Gains were most pronounced in prefixes and spelling, while progress in roots and suffixes did not reach statistical significance. Team self-efficacy increased from 34.32 to 37.13 (p < .001) and positively correlated with posttest outcomes (p = .048). Gameplay logs revealed frequent difficulties with prefixes and spelling, highlighting a need for targeted feedback. This study underscores the promise of DGBL for nursing education, as it promotes engagement and collaboration. Future instruction should emphasize immersive clinical simulations, dynamic visual aids (e.g., augmented reality), and delayed posttests to assess long-term retention. Additionally, extending contextual DGBL to other healthcare fields — such as pharmacology — could address similarly challenging terminologies. By refining game mechanics, integrating discipline-specific content, and employing user analytics for real-time difficulty adjustments, educators can optimize learner experiences and deepen comprehension. Ultimately, these strategies may strengthen nursing curricula by enhancing students’ technical vocabulary skills and confidence in collaborative problem-solving.