This paper presents the design, implementation, and evaluation of the HydroRocket project, a project-based learning (PBL) experience for first-year engineering students. The activity combined the construction of a water-propelled rocket with digital simulation in MATLAB, data acquisition through Arduino-based sensors, and personalized tutoring supported by artificial intelligence. The primary objective was to enhance engineering design self-efficacy, defined as students' confidence in their ability to address complex design tasks. The validated Engineering Design Self-Efficacy Scale was administered to 62 students, yielding mean scores ranging from 3.56 to 4.05 with high internal consistency (¿=0.91). Quantitative results were reinforced by qualitative evidence. Additionally, prototype performance improved by 44% over successive iterations, providing objective evidence of design improvement. Findings indicate that the integration of emerging technologies into hands-on projects can foster motivation, autonomous learning, and the development of professional identity in engineering from the earliest stages of education.
