In this paper, we explore how engineering students are motivated to develop group creativity in a Problem and Project-BasedLearning (PBL) environment. Theoretically, we take a social cultural approach to group creativity and emphasize the influences ofa learning environment on student motivation in group creativity development. Empirically, a case study was carried out on astudent satellite project in the Department of Electronic System at Aalborg University in Denmark, by using qualitative methodsincluding interviews and observation. The findings show that student motivation is stimulated in multiple ways in a PBLenvironment, such as formal and informal group discussions, regular supervisor meetings and sharing leadership. Furthermore,factors such as common goals, support of peers and openness stimulate motivation. However, the students think that a timeschedule is a barrier to group creativity. Thus, the supervisors are encouraged to be more aware of the complex relationshipsbetween student, teacher and task and the student response.