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The aim of this paper is to provide educators and potential industrial partners with an insight into students' perceptions of working with industry during their undergraduate studies, and to highlight, through comments from academic staff, the effect on their design outcomes. The paper focuses on a collaborative design activity conducted with second-year product design students in a UK higher education institution. The study is part of the ongoing pedagogic development of a module and programme relating to design practice and covers two academic years--in one year the design brief was based on a review of literature and in the second an industrial partner provided the information. Academic staff and industrial partners were interviewed; students completed a survey regarding their experience and perception of working with the industrial partner in the module. The results indicated that there were significant improvements in student engagement, academic grading and the perceived quality of the final design outcomes. The results also showed that students not only saw industry collaboration as an essential element in their undergraduate learning but also that it was a key factor when deciding which programme to study.