The present article investigates the theoretical foundations and practical dimensions of a competency-based approach as a means of enhancing student engagement in literature lessons at the higher education level. The study proceeds from the premise that traditional reproductive methods of teaching literary texts are increasingly inadequate in addressing the cognitive, communicative, and critical-thinking demands placed upon contemporary learners. Drawing on the didactic heritage of John Dewey, Benjamin Bloom, Jerome Bruner, and David Kolb, as well as contributions from Uzbek pedagogical scholarship, the article examines the conceptual relationship between learner competency formation, active participation, and meaningful engagement with literary content. The research employs a mixed methodological framework, combining theoretical analysis, comparative pedagogical review, and elements of quasi-experimental observation conducted within Uzbekistan's higher education context. The article proposes a structured methodological model comprising four interconnected stages — motivational activation, analytical immersion, creative application, and reflective consolidation — each designed to progressively deepen student engagement while simultaneously fostering key professional and communicative competencies.