The major purpose of this study was to explore the effects of a capstone course to enhance student learning in higher technology education. In a capstone course, the teacher applies project-based learning where the students assume the responsibility for their own learning. In this study, three virtual companies were established in the class and collaboration learning approach was adopted with great emphasis on industrial involvement and student role play for a better preparation for future professional life. This approach has allowed students to reinforce and apply subject knowledge, whilst developing key skills such as teamwork and communication. The project-based approach has been successful at improving students' core competences within a simulation working environment. The other contribution of this paper is to describe the mechanism of how a capstone course continuously improve students' learning and the curriculum design of a program in higher technology education.