A subject introducing embedded systems design to second-gear undergraduate students is described. The subject provides units introducing microprocessors and CAD tools for electronic circuit design and integrates these units into a single cohesive subject by means of a group project. The subject is developed as a multidisciplinary cooperative problem-based learning program with the base groups structured to comprise members from different degree programs offered by the School of Engineering at James Cook University, Australia. Initial results show that cooperative problem-based learning can be used to develop problem-solving, teamwork and lifelong learning skills as well as producing a level of technical knowledge beyond that of individual achievement.