This paper presents a pedagogical innovation rooted in the TEC21 Educational Model at Tec de Monterrey University, which integrates Challenge-Based Learning (CBL), mathematical modeling, generative AI tools, and rapid prototyping into a cohesive undergraduate engineering experience. Aimed at secondsemester students in computational technology programs, the project challenged learners to design innovative pet toys by applying mathematical concepts-such as interpolation, systems of equations, and parametric modeling-within a user-centered design framework. Through a structured seven-step process, students conducted market research, employed design thinking, developed models in MATLAB, and fabricated physical prototypes using 3D printing technologies. Generative AI tools supported ideation and analysis, while iterative testing bridged the gap between abstract concepts and real-world applications. Results demonstrate that this interdisciplinary approach not only enhanced students' technical skills but also fostered critical soft skills such as teamwork, communication, and problemsolving. Reflections indicated a significant transformation in learners' motivation, engagement, and confidence, affirming the effectiveness of the TEC21 model in preparing future-ready engineers capable of addressing complex, real-world challenges through innovation, empathy, and sustainable design.