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Student chapters of professional societies have long been a valued part of the undergraduate engineering experience. A student chapter of SME can provide benefits to the involved students and faculty, as well as to local industry and the sponsoring SME chapter students engaged in SME gain linkage to like-minded students, valuable industry contacts, and introduction to a variety of manufacturing industry experiences. Multiple benefits can be derived through engaging students and faculty outside the classroom with industry. Properly leveraged, student chapters of professional societies can help a university enhance student recruitment and retention. Local industry can gain contacts with motivated students who are strong candidates for co-op assignments, internships and full-time employment.While these benefits can all be achieved, there are challenges, particularly with regard to sustaining the strength of the organization over time. Industry and students are naturally somewhat insulated from one another, and a well-directed effort is required to connect these two distinct groups. This paper outlines the benefits, presents the key characteristics of a vibrant student chapter, and discusses the resources required and the challenges and pitfalls that might be encountered. The paper addresses techniques to develop a successful student chapter of SME including a motivated core of student leaders, engaged faculty in the roles of sponsors and advisors, strong affiliation with a local SME chapter, reasonable student membership fees, and compelling benefits of membership in the student SME chapter.