Purpose: The main purpose of this study was to compare the effects of OSCE method and the traditional evaluation method on nursing skills performance of students enrolled in fundamentals of nursing courses. Method: The study was designed as a quasi-experimental, nonequivalent control group post test design with two classes of sophomore students attending fundamentals of nursing courses at one baccaleureate nursing school located in a metropolitan Seoul area. The control group was evaluated using a traditional method and the experimental group was evaluated using the OSCE method. Data were collected from June, 2001 to June, 2002. There were 35 students in the OSCE method group and 39 students in the control group. Data analysis was done using SPSS WIN 9.0. Result: The results showed that the students in the OSCE method group did significantly better in clinical nursing skills performance than the students in the traditional method group. And the OSCE method group showed significantly higher satisfaction score in the evaluation method than the control group. Conclusion: The OSCE method is an effective tool for evaluating clinical nursing skills performance in student nurses. It is necessary to explore more efficient ways to develop OSCE cases in wider areas of nursing education. It is also recommended to replicate similar studies in nursing education.