This paper discusses the new five‐year undergraduate medical course at the University of Newcastle in Australia. Extensive examples are included to illustrate the analytical approach which has led from the specification of programme objectives to the design of a course with complete integration of the basic and clinical sciences from the beginning to the end of the course. Lectures are replaced by individual and small group learning centred around a carefully designed sequence of medical problems. Projects in the community are designed to lead to the attainment of specified competences in relation to problems of groups in the population. In addition, educational experiences in interviewing, physical examination, special investigation and therapeutic intervention techniques, as well as competence in design‐measurement‐analysis‐reporting in medical practice and research are integrated with problem‐based learning. Students see patients in hospitals and in the community from the beginning of the course. While clinical competence in problem‐solving and management is a major aim, students are expected to demonstrate a thorough grasp of the underlying basic sciences, including behavioural science, by providing scientific reasons for their decisions and actions. As the Newcastle graduate is expected to demonstrate a humanistic attitude to his patients, an ability to deal with problems, a willingness to continue his own education and to collaborate in team work, the Faculty places emphasis not only on the medical content of the course, but also on the educational process.