This study aimed to determine the effects of the Learning from Incidents (LFI) approach in developing students’ problem-solving skills and enhancing active citizenship literacy. It addressed the need to strengthen students’ critical awareness of societal issues and their ability to apply their skills in real-life community contexts. Learning from Incident as a strategic learning approach in education benefited the five skills learning area of analytical thinking, brainstorming, communication, decision making, and community engagement.  An experimental research design was employed, involving 50 Grade 10 students from Sta. Filomena Integrated School during the School Year 2025–2026, and were selected through purposive sampling. Data were gathered using pre-test and post-test assessments, as well as pre- and post-self-assessment surveys, and were analyzed using mean, frequency, percentage, and One-Paired sample T-test. Descriptive findings revealed that respondents generally agreed on the effectiveness of LFI processes, including investigating and analyzing (M = 3.40, SD = 0.57), planning interventions (M = 3.22, SD = 0.69), intervening (M = 3.28, SD = 0.66), and evaluating (M = 3.33, SD = 0.62), indicating that students were able to understand and apply the structured steps of LFI. After implementation, respondents agreed that LFI enhanced their skills, particularly in active citizenship literacy (M = 4.48, SD = 0.551), decision-making (M = 4.28, SD = 0.543), communication and brainstorming (both M = 4.23), and analytical thinking (M = 4.13). This suggests that LFI effectively promotes higher-order thinking, collaboration, and civic engagement. Inferential analysis showed that LFI led to improvements in all measured skills; however, only some were statistically significant. Analytical thinking increased from M = 12.36 (SD = 4.72) to M = 13.56 (SD = 3.84) but was not significant (t = -1.444, p >.155), indicating a modest effect. In contrast, communication (t = -5.545, p <.000), brainstorming (t = -8.419, p < .000), decision-making (t = -4.589, p < .000), and active citizenship literacy (t = -5.223, p < .000) showed statistically significant improvements, with brainstorming demonstrating the greatest gain. These results highlighted that LFI is particularly effective in enhancing creative thinking, collaboration, decision-making, and civic participation. The study rejected the null hypothesis, confirming significant differences between pre-test and post-test results. Overall, the findings demonstrated that LFI is a transformative instructional approach that strengthens students’ practical problem-solving skills and fosters active citizenship, although additional strategies may be needed to further enhance analytical thinking.