The authors present a challenge-based and student-centered approach to higher education didactics in this essential guide, which enables students to acquire and apply not only subject-specific knowledge but also problem-solving skills, analytical and social competencies, as well as the ability for self-reflection and self-development. Based on current findings from motivation, learning, and neuroscience, a practice-oriented teaching and learning model is introduced, where challenges, active engagement, feedback, and reflection are at the core. Students are encouraged to develop independent critical thinking. The essential guide includes numerous tips for an engaging and motivating form of teaching and learning, along with concrete examples from teaching practice.