This paper explores an alternative pedagogical model for architectural education through The Urban Design Architectural Studio, a live project-based design studio engaging real clients and contested urban contexts. Responding to critiques of the traditional design studio’s isolation from civic and ethical realities, the studio positions students as facilitators rather than isolated designers. Using stakeholder engagement, ethnographic observation, gamification, and data-driven analysis, students developed multiscalar urban strategies rooted in social and ecological values. The study demonstrates how live projects cultivate critical professional competencies—such as negotiation, ethical reasoning, and civic literacy—filling a gap in architectural education and aligning with the evolving demands of practice.