<p>Higher education institutions face increasing pressure to embed sustainability and circular economy competencies into curricula, yet many programs still rely on theoretical instruction with limited opportunities for embodied, material-based learning. This study proposes a new pedagogical model Material Driven Transformative Learning (MDTL), grounded in empirical evidence from a waste based material making assignment in an interior design course in Malaysia. The study was conducted over a fourteen week semester. Twenty five undergraduate students fabricated material samples from food, agricultural, and manufacturing waste, using low tech processes, iterative experimentation, basic performance testing, and reflective documentation. Data from student reports, photographs, testing logs, and reflections were analysed thematically and mapped to cognitive, psychomotor, and affective learning domains. Results show that working with waste catalysed three transformative mechanisms: constraint driven inquiry, embodied empirical reasoning, and cultural reconfiguration of studio learning practices. Findings also revealed three sustainability competencies not yet articulated in existing literature: material intuition, ecological risk tolerance, and collaborative circular practice. These findings inform the MDTL model, which positions material entanglement, ecological agency, and socio cultural mediation as central to transformative sustainability learning. The implications extend beyond design education, offering a transferable pedagogical framework for embedding circular economy principles in practice based disciplines across higher education.</p>