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The critical shortage of registered nurses (RNs) in the United States has led to increased enrollment in nursing schools, but the number of graduates is still decreasing, as nursing students struggle and fail in upper division courses. There is a significant gap in knowledge concerning students' self-efficacy (SE) as a factor directly influencing students' academic performance. The problem examined in this correlational study was the impact of collaborative learning in an innovative classroom setting on Bachelor of Science in Nursing (BSN) students' SE and academic performance. Framed by Bandura's theory of SE, the research questions examined the relationship between students' SE scores at the beginning and end of the innovative course, and their end-of-course grade. The sample included 22 students from one nursing class (N = 22) in an undergraduate-level nursing program in Texas. Data sources included disaggregated student grades and an anonymous, online survey. Analyses included Chi-square and Pearson's r correlation of the data. Results indicated SE scores at the end of the course were higher than they were at the beginning of the course, which provided an initial understanding of the impact of the innovative learning environment on BSN students' academic performance, but were not statistically significant and could not, therefore, disprove the null hypothesis. This study indicates that student nursing courses could increase student self-efficacy, which would result in a positive impact in hospital and clinic support for United States citizens.