As the demand for quality physical educators increases nationally there is a need to examine the effectiveness of the undergraduate experience for pre-service teachers. Using the National Standards for Beginning Physical Education Teachers (2002) as a framework, undergraduate Physical Education and Teacher Education (PETE) programs can foster learning experiences that lead to effective teaching practices. Based upon Standard 10 (Collaboration), master teachers should be able to establish collaborative partnerships with agencies in the larger surrounding community. However, according to Eyler and Giles (1999, pg. 23), Thomas Ehrlich, when president of Indiana University, noted “the most frequent criticism… from both community leasers and employers was that graduates are unprepared to collaborate as members of a team...most of their undergraduate work had been done alone”. Therefore, exposure to community-based experiences during undergraduate study may provide pre-service teachers with opportunities that support the development of their collaboration skills. Interpersonal development as it relates to leadership skills, application of course content, communication and working with others, is associated with field-based projects (Eyler et al., 1999). Thus, the purpose of this two-year study was to investigate pre-service teachers’ perceptions of the usefulness of a community-based project in the development these skills. Specific areas addressed included enhancement of their leadership skills, application of subject matter, and ability to communicate their ideas in a real world context. Kinesiology students from one elementary (n=26 elm) and one secondary (n=25 sec) methods course were used. Students were placed in one of twelve multi-disciplinary teams which served approximately 450 low income Hispanic/Latino and African-American families. Sites ranged from pre, middle and high schools and senior citizens centers. Each team developed and taught 3 to 6 presentations designed to increase awareness of physical activity and nutrition. Using a four-point Likert-type scale and open-ended questions, qualitative data were collected. A constant comparative method was used to analyze the data (Glaser & Strauss, 1967; Patton, 1980). The results from the students indicated that all three areas investigated demonstrated a positive agreement that the community-based project did indeed enhance their interpersonal skills. This was further substantiated in the open-ended student responses. Specific skill results include leadership (elm=54% and sec=56%), application of subject matter (elm=62% and sec=64%), and communication (elm=62% and sec=72%). These data support the notion that sound pedagogy skills can be developed in pre-service teachers. Specifically, PETE programs must provide community-based opportunities aimed at developing interpersonal skills with the intent to foster collaboration.