Few empirical studies have demonstrated the positive consequences of integrating design thinking with project-based learning (PBL) for generating meaningful community impact. Our study fills this void by incorporating a new pedagogical approach--design thinking--into project-based learning (PBL) as an innovative way of structuring class exploration activities in an MBA capstone class. Our findings have important implications on how to stimulate students' meaningful engagement with external stakeholders, add creativity and innovation, and produce impactful community outcomes in the context of project-based learning. Our research is positioned to support the attainment of AACSB accreditation for business schools, especially under the AACSB, 2020 Standards.