This study reveals the experience of a competency-oriented children’s literature course and investigate its specific effects and limitations. The course involves problem-based learning (PBL) for students to explore. The problem scenario was in conjunction with the needs of a school-based curriculum in a new elementary school. On the one hand, we want to cultivate the ability of students to collaboratively solve practical school curriculum problems. On the other hand, we aim to prepare students with a competency-oriented curriculum design ability that meets the requirements of the 12-year state education. For students, knowledge and skills have been increasing in several aspects, including children’s literature, school-based curriculum planning, competency-orientated and cross-disciplinary curriculum design, and the ability to solve problems collaboratively. For school practitioners, the main gains are acquiring the theory and practice of PBL. For them, PBL provides a potential tool for future school-based curriculum development, and it is also a worthwhile strategy for elementary school teaching.