Institutions of higher learning were rapidly made to change from in-person to fully online learning due to the COVID-19 pandemic. This change posed an inherent problem in successfully engaging students in learning in a remote learning environment. Thus, the study aims to enhance students' problem-solving skills through self-directed learning in a Smart Learning Environment. A cohort of first year undergraduate students (n=147) in a private university were given the task to solve a programming problem in a fully online course, in a team. These students had never been in a formal online course nor met their course mates face-to-face due to the pandemic. Various digital tools, including Zoom, Edmodo, and others, were used in this learning environment. A Likert-scale survey and open-ended questions were used to obtain data on the attitude and perception of the students towards the self-directed learning environment. An exploratory factor analysis was performed on the data to reduce the factors to several constructs, such as self-management, self-monitoring, motivation and teamwork. In completing the task, students took more control of their learning, self-monitored themselves and remained committed and motivated to reach their learning outcomes and goals. There were encouraging and positive evidence that students were able to be effectively engaged in a smart learning environment and were more independent but not isolated learners.