Purpose: Technology-based collaborative learning (TBCL) is the manner in which students can use technological tools and digital platforms to share knowledge and learn collaboratively. It can help increase students' participation, motivation and achievement due to the stimulating teaching environment. The study intends to examine the effect of TBCL on students' competency-based education (CBE). Design/methodology/approach: A questionnaire as quantitative data gathering tool is employed in this correlational study. This study used purposive sampling which is done on undergraduate university students (N = 187) in order to accomplish the goal. The data are analyzed using the SPSS software (Statistical Package for Social Sciences) version 27.0. Findings: The findings of this study indicate the strong positive association between the TBCL and students' CBE with the correlation coefficient value 0.993. Hence, the null hypothesis is rejected, and alternative hypothesis of this study is accepted. Practical implications: The findings will provide valuable insights that will help educators, policymakers, industry partners and researchers better prepare students for the demands of the digital age and improve the quality of education by identifying successful strategies for integrating technology into collaborative learning environments. Originality/value: This study is unique because it synthesizes and analyzes previous research to look at the particular context of TBCL and how it affects students' CBE in higher education institution in Sindh that was not previously investigated.