This paper presents a technique that was used in the recent development of a new Mechatronics degree in Australia. This technique addressed the local industry needs and the available resources for a well-balanced Mechatronics degree program. The degree development was based on project-based learning and industry engagement. The development of the new Mechatronics degree was made possible via a State Government grant of AU2.4MillionwhichwasmatchedbyindustrycontributionofAU10 Million in cash and in-kind. Since industry was a major stake holder in this degree, a specific industry survey was conducted to check the desired graduates attributes, from industry point of view. The results of this survey is also included in this papers. In addition, the program also addressed the regional industry's challenge of retaining qualified engineers via a clear pathway program for students knowledge and skills development. This paper presents industry's anticipated outputs of the academic Mechatronics program. In addition the paper also discusses the mechanisms adopted for the development of this new degree. The developed fully integrated Mechatronics program was founded on the realisation that if a person undertook a mechanical degree followed by an electronics degree followed by a computer science degree, that person is, still, NOT a Mechatronics engineer