This paper presents an Application Based Active Learning (ABAL) methodology on Power Electronics (PE) and Electric Machines (EM) as a hybrid laboratory course for the undergraduate students to design and implement the real-world engineering problems. The ABAL is a type of active learning which is a branch of Learner-centered teaching (LCT). The DC/DC converter along with the speed control of DC separately excites the motor. In addition, a DC/AC converter is designed to control the speed of an induction motor. The results are then investigated on a hardware platform under the ABAL experimental methodology. This paper also discusses the problem identification selection of the equipment, circuit design, hardware mounting and critical analysis of the results acquired from the hybrid laboratory. The ABAL methodology was evaluated based on student satisfaction, feedback, grades and interest to solve the real-world problem rather than cramming the engineering concepts and fulfill so-called lab routine and tasks