This practitioner-research compares the effects of competition and challenge on students’ enjoyment in PE. The data was collected during six lessons in the context of a gymnastics unit in a junior high school setting. Three lessons were based on challenge and the other three on competition. Data sources included my students, my associate teacher and my own reflections. The findings from all three data sources suggested that competition had an overall negative effect on student enjoyment. Two key themes emerged during analysis: student participation and student interactions. After transitioning to competition from challenge, 42% of the students reported a decline in their desire to participate and it was noted by all sources that there was an increase in negative student interactions. Details of context are provided so readers can consider the importance of this research for their own teaching practices. Pedagogical approaches to PE framed through challenge appear to open up the possibilities for students to engage with learning as envisioned in the New Zealand Curriculum.