This paper deals with development of effective Intelligent Control teaching environment using Challenge Based Learning (CBL) at Mechatronics Department of Politeknik Elektronika Negeri Surabaya (PENS). CBL is one of problem-based, student centered learning in which a group of students learn according their own pace, and they make their own final challenging target. Moreover, social media was utilized to communicate with their peers around the world. The CBL was implemented in one pre-selected class, and another class was teach by using conventional teacher-based learning, as control variable. Both classes then evaluated by using the same problem in mid and final examination. Satisfaction of effective teaching environment then verified by using questionnaire. It was revealed that the students consider that the CBL method quite enjoyable and attractive learning environment.