Purpose: This study investigated the effects of simulation-based nursing education (for the care of congestive heart failure patients) on self-directed learning competency, clinical knowledge and problem-solving ability among nursing students. Methods: A one-group, pre-post design was utilized with 87 nursing students as the subjects. The scenario of simulation-based nursing education was created using a high-fidelity patient stimulator, and consisted of four states ((1) assessment, (2) reviewing laboratory data and administering medications and treatments, (3) managing increased dyspnea and decreased urine output, and (4) handling the "getting better" state). The simulation-based nursing education included orientation, team-based learning, team-based practice, and debriefing. The data were analyzed using descriptive statistics, Pearson`s correlation coefficients and paired t-tests. Results: The scores on the factors for self-directed learning competency (t=-2.57, p= .011), clinical knowledge (t=-6.85, p<.001), and problem-solving ability (t=-3.01, p= .003) increased significantly after the education intervention. Conclusion: Simulation-based nursing education is useful in improving self-directed learning competency, clinical knowledge, and problem-solving ability in nursing students.