Purpose: The purpose of this paper is to explicate how the processual third context learning approach provides new understandings and dimensions to the well-established terminology within the fields of inter-organizational learning and university-industry collaboration. These understandings and dimensions are empirically informed by an analysis of a collaboration between Aalborg University and Bang & Olufsen, a Danish loudspeaker manufacturer. Design/methodology/approach: To fulfill the research purpose, a case study based on a participatory data collection strategy was applied in the collaboration between Aalborg University and Bang & Olufsen. Data were collected through a qualitative multimethod approach, comprising semi-structured interviews, field observations and field notes. Phenomenologically inspired content analysis revealed the themes outlined and discussed. Findings: The third context framework was useful in outlining the complexity of a bidirectional collaboration. The inter-organizational learning processes were, for example, influenced by the actors' recurrent inquiry of perplexities regarding the purpose and content of the collaboration. The extracted empirical findings are discussed and related to the fields of inter-organizational learning and university-industry collaboration, thereby explicating how a processual learning perspective provides new understandings and dimensions to collaboration across organizations. Originality/value: The paper contributes empirically informed processual-learning dimensions to the literature on inter-organizational learning and university-industry collaboration.