“Collaborative Learning” is instructional method in which students of diverse performance levels engage and work communally in small groups to achieve common goals or to find collective solution of particular problem. At current time, our education system and learning process are not limited to individualized approach but have extended to collaborative learning, including mutual activities. This chapter highlights different types of collaborative learning, such as Think-Pair-Share, Problem-Based Learning, Guided Designs, Case Studies, Simulations, Peer Teaching, Small Group Discussion, Peer Editing, Jigsaw Strategy, Using Roles in Group Work, Catch Up, Fishbowl Debates, Team-Based Learning, Number Heads Together, and Concept Mapping. Further benefits of collaborative learning have been discussed in learning process, as it is a kind of relationship among students who foster positive interdependence, individual accountability, interpersonal skills, development of higher-level thinking, communication skills, self-management, leadership skills, and most significantly critical thinking. Critical thinking involves asking appropriate questions, gathering and creatively sorting relevant information, relating new information to existing knowledge, reexamining beliefs, reasoning logically, and drawing reliable conclusions. After reviewing scientific papers, importance of collaborative learning is highlighted, so that policymakers can bring fruitful changes to make addition of collaborative projects and activities in education system. Particularly, promotion of student’s interaction in groups as well as interaction among students and faculty is increased; this will cause student retention and enhance their self-esteem and responsibility.