Background: Active management of the third stage of labor is a low-cost, evidence-based preventive intervention that is easy to implement and very successful in reducing postpartum hemorrhage in facility-based deliveries. The aim of the study was to investigate the effect of competency-based education on the performance of intern nursing students in the active third stage of labor management. Design: A quasi-experimental study design was used. Sample: Ninety female intern nursing students who completed their internship year at Menoufia University's Faculty of Nursing in the academic year 2023-2024 were chosen as a convenient sample. Setting: The labor unit at Menoufia University Hospital in Egypt was the study's setting. Instruments: The knowledge evaluation questionnaire, an observational checklist of intern nursing students' practices, and a structured self-administrated questionnaire were utilized to gather data. Results: The results showed that before the intervention, the study and control groups had good total knowledge levels of 17.8% and 15.6%, respectively, compared to 91.1% and 13.3% after the intervention. Furthermore, before the intervention, 62.2% and 68.9% of the study and control groups had competent practice levels; following the intervention, both groups had 95.5% and 66.7%, respectively. Conclusion: The intern nursing students' knowledge and practices about active management of the third stage of labor were improved by competency-based education post-intervention than pre-intervention. Recommendations: Competency-based education is strongly advised to be included in the clinical training section of the maternity nursing curriculum and other maternity nursing subjects as proactive measures to enhance the practice of intern nursing students regarding active management of the third stage of labor.