This article explores the current state and new roles of physical education as liberal education (PELE) in higher education. Recently, there has been growing discontent with PELE due to program redundancy and lack of educational power in higher education. However, little attention has been given to how to reconstruct PELE in higher education. To investigate this matter, this article examines (a) the origins and rationale of liberal education; (b) similarities and differences between liberal education, general education, and liberal arts; and (c) connections between liberal education and physical education. To conclude, two challenges of PELE in higher education are presented. These issues need to be overcome to bring PELE authentically into the world of colleges and universities.