Modern educational paradigm demonstrates a shift from learning outcomes to practice-oriented competencies. The present study examines the meaning and role of different types of Competency-Based Education worldwide. The key idea of Competency-Based Education can be described as providing student with knowledge and skills of applying it. The definitions of Competency-based approach vary in different parts of the world. The present paper regards the meanings of the term Competency-Based Education, and describes the example of implementation of this approach in Islamic Studies program.