A flurry of new instructional approaches has recently emerged in post-secondary education; one approach receiving the most attention is competency-based education (CBE). While many think CBE is relatively new, its roots are deeply seeded in decades-old pedagogical philosophies. The frequency with which CBE is now appearing in conversations about higher education instruction and reform gives the false impression that most practitioners actually know what CBE is, or how it contrasts with other instructional approaches. In fact, the modern dilemma faced by many in higher education is that few institutional leaders have a comprehensive understanding of what CBE is, how it differs from other instructional approaches, the historical significance behind it, and how it might be used to effect pedagogical change and instructional innovation. This chapter explores the historical basis of CBE, its benefits and detriments, and its operational elements.