Practical arts is a subject that not only promotes learners' better understanding of work in their daily lives, but also enables them to find ways to solve work-related problems by fostering basic skills and attitudes necessary for performing the work. The teaching of practical arts as a subject should be focused on developing creativity and self-efficacy by the active employment of scientific thinking through the activity-centered decision-making process. Plus, the teaching of the practical arts subject must be conducted according to the problem-solving model. The purpose of this study was to examine the effects on children's creativity and self-efficacy by applying problem-solving instruction in practical arts education and to show how this is reflected in the literature of problem-solving learning. The following delineations are the specific objectives used to achieve this purpose: (1) identify the effects of problem-solving instruction on the development of children's creativity; and (2) identify the effects of problem-solving instruction on the children's self-efficacy. This study shows the progress of creativity and self-efficacy in the experimental and control groups after the experimental group received problem-solving instruction and the control group received typical instruction (i.e., without the problem-solving emphasis). The findings reflect several significant differences between the typical instruction group and the group with the problem-solving component. Conclusions and recommendations based on the findings of this study are presented. (Contains 1 figure and 12 tables.)