This research contributes to the need to identify and expand learning environments that encourage undergraduate students to develop collaborative work skills and apply their classroom knowledge to solve real-world problems. Using qualitative methods, we examine the effects of the interaction between two teams of students when solving a Model-eliciting activity, based on the theoretical framework of the Models and Modeling Perspective. Our analysis shows that the students had two opportunities for interaction, within the team and between the modeling teams. Through these interactions, the students refined their models in three directions: mathematical knowledge, interpretation and modeling of the phenomenon, and mathematical representations. The findings of this study emphasize the significant value of Model-eliciting activities in enhancing students' collaboration and modeling abilities. [For the complete proceedings, see ED658295.]