Abstract Introduction: Team-based learning (TBL) is a student-centric teaching–learning (TL) method and fosters active learning. TBL has an advantage over other small group TL methods for balancing teaching time and resources. Aim: The study aimed to determine the effectiveness of TBL methodology in improving learning outcomes among 2nd-year undergraduate medical students in pathology. Settings and Design: This was a quantitative interventional study involving 100 2nd-year MBBS students in pathology at AIMS, BG Nagara. Methodology: Two groups of 50 students were exposed to three TBL and case-based learning (CBL) sessions on similar topics. For the TBL session, individual readiness assurance test scores and team readiness assurance test scores were obtained. Statistical Analysis Used: For both the TBL and CBL sessions, retention test scores were obtained after 2 weeks and the effectiveness of two methods of learning was determined by comparing the retention test scores by independent Student’s t-test. Feedback on students’ perception of TBL was obtained using a five-point Likert scale. Results: The mean test score of the TBL session was significantly higher than that of CBL sessions (19.80 vs. 15.86, P < 0.0001). Similarly, it was also observed that the retention scores were higher among average performers after the TBL session (19.71 vs. 12.50, P < 0.0002). Conclusion: TBL is more effective than CBL in fostering learning and it selectively benefits average performers more than higher performers, evidenced in this study by better retention of knowledge.