Active learning has emerged as one of the most effective pedagogical approaches in higher education, shifting the focus from passive knowledge transmission to student-centered engagement. Traditional lecture-based teaching methods often limit student participation and critical thinking, whereas active learning techniques encourage learners to analyze, discuss, collaborate, and apply knowledge in real-world contexts. This study investigates the impact of active learning techniques in university classrooms on student engagement, academic achievement, critical thinking, and knowledge retention. A systematic review of contemporary literature from 2018–2026 was conducted, examining evidence from various disciplines including science, engineering, medicine, business, and social sciences. Findings indicate that active learning significantly improves academic performance, student satisfaction, problem-solving abilities, and long-term retention of knowledge. Despite challenges such as time constraints, classroom management issues, and faculty training requirements, active learning remains a highly effective strategy for modern higher education. The study concludes that integrating active learning techniques into university curricula can substantially enhance teaching effectiveness and student success.