The use of video media, particularly YouTube videos, has emerged as highly popular and powerful educational tools in higher education due to its ability to provide rich and engaging content that enhances learners' understanding and retention of information throughout the learning process. Much of the current research highlights a need for more active learning strategies to maximize the educational potential of these videos because traditional YouTube videos tend to create passive learning experiences. However, when properly integrated with active learning strategies through innovative video design and development, YouTube videos can enhance student engagement, learning outcomes, and satisfaction. Therefore, this research aims to innovatively design and develop YouTube videos as educational tools and evaluate students' perceptions of their learning and the effectiveness of the video design and development in higher education involving 20 graduate students in the entrepreneurship education program. The data were analyzed using mean, standard deviation, and content analysis techniques. The findings showed that the innovatively developed YouTube videos were perceived to be highly appropriate (Mean= 4.52, S.D. = 0.13). Students reported that they learned entrepreneurship more effectively from various scenarios filled with choices and challenges in entrepreneurial paths. They also perceived the effectiveness of YouTube videos as educational tools to be very high (Mean= 4.58, S.D. = 0.72), noting that these videos were effective tools that promotes active and experiential learning experiences. In conclusion, this study indicates that YouTube videos, when innovatively designed and developed as educational tools with active learning strategies, can be implemented as a powerful tool in teaching entrepreneurship.