This paper reports an evaluation by clinical nurse educators of problem-based learning (PBL) in a 3-year Australian undergraduate nursing programme. This method of learning is reliant on the students' ability to learn in a self-directed mode and is considered to bridge the 'theory-practice' gap more effectively. The purpose of this evaluation was to ascertain if this was the case. Data were collected from interviewing clinical nurse teachers at the end of the first and third years of implementing the PBL programme. Findings revealed an improvement in the students' ability to inquire and learn in a self-directed manner, and the development of a more holistic view of the patient. More conspicuous was the students' inability to perform psychomotor skills. The students also lacked knowledge in the areas of fundamental anatomy and physiology. Recommendations and actions taken by the school are discussed. This evaluation highlighted the need for continual evaluation and implementation of strategies to meet the needs of quality nurse education. (C) 1999 Harcourt Publishers Ltd.