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This study explored seven engineering graduate students’ collaborative problem-solving (CPS) skills while working in interdisciplinary teams. Students worked in two different teams, in face-to-face and online environments, to solve complex manufacturing design challenges posed by their instructor. The students were assessed using an observational rubric with four dimensions: peer interactions, positive communication, tools and methods and iteration and adaption, and scored via each dimension’s associated attributes, and subsequently interviewed. Six students scored emergent or proficient in CPS and had slightly higher CPS scores during the second observation. One student demonstrated a limited ability for CPS and the observable CPS skills decreased during the project. Interviews revealed the importance of (1) relying on instructor and student chosen technologies for collaborative tasks, (2) recognising and drawing on peer expertise early in the project, (3) building trust during and outside of team meetings and (4) valuing off-site and online collaborative work. Findings advance the understanding of how graduate students working in interdisciplinary teams rely on particular features of collaboration to solve engineering design challenges, which may assist in developing future skills and fostering productive teamwork.