The problem-based learning (PBL) approach applied in the clinical setting is different from that applied in the classroom setting. This study analyzed a learning and teaching episode in a simulated clinical situation using the PBL approach. Conversation analysis was used to examine the scenario. Data analysis revealed six key manifestations of this learning arrangement: collection of information, data analysis, formulation of hypotheses, validation, discussion and reflection, and learning synthesis. The simulated clinical environment provided realism in learning and allowed students to experience a full range of learning issues within a short time frame. Problem-based learning was a deliberate approach that helped students achieve the following learning outcomes: patient-focused care, student-directed learning, inductive learning, and translation of theoretical knowledge into practical information. Learning was further enhanced with postsimulation self-evaluation and peer analyses. The incorporation of the PBL approach can bring out the optimal effects in a simulated learning environment.