The traditional classroom teaching technique which is commonly used in Engineering Education does not focus on what the students have learnt. As a result of this the students lose interest in the course. Project based learning on the other hand gives the student an opportunity to explore more on the concepts and apply the same while working on the project. Project based learning has been implemented in the course of Theory of Machines I which is offered to the second year students of the Mechanical Engineering Program in the autonomous curriculum of K.J.Somaiya College of Engineering. The ‘Do it yourself’ mini projects were assigned as a part of internal assessment to all the students of the second year. This paper evaluates the impact of project based learning on inculcating interest in the course, improving the performance in examination and course outcome. The improvement in the test marks has been analysed statistically. The feedback taken from the students has also been analysed. The project based learning method is useful in retaining the interest of the students in a core course.