Background The effectiveness of Problem Based Learning (PBL) in physiotherapy education is not clearly studied. This systematic review was to determine the effectiveness of PBL compared to traditional methods (TM) or using other methods. Methodology PubMed, Pedro, Science direct, and Google Scholar Databases were searched on 11 January 2022 for randomized controlled trials, Non-randomized control trials, Quasi-experimental trials, before and after study design and cohort studies published in English from 2000 to 2022. Two reviewers conducted screening, eligibility assessment, data extraction, and risk of bias assessment. A narrative synthesis of outcomes is presented, Preferred Reporting Item for Systematic Review was used to report the review. Meta-analysis was not performed due to the heterogeneity of studies. This protocol was registered in Prospero (CRD 42022301693). Results The primary search strategy identified 2826 potentially relevant articles, of which 1666 remained after removing duplicates. After title and abstract screening 22 potentially eligible studies were identified, 2 of those papers met all the predefined eligibility criteria. The total population size is 291. The results indicate that PBL was effective compared to the TM in terms of promoting early Evidence Based Practice (EBP); PBL facilitates learning strategies and study preference was high for PBL in comparison to TM. Conclusion PBL is effective in developing different competencies, especially promoting early EBP, in physiotherapy undergraduates and is reported as a preferred method compared to TM. However, there is a lack of evidence to confirm this finding. Research studies with high methodological quality need to be conducted in future.