One of the main focuses of science education is developing 21st-century skills, including critical thinking ability. This skill is crucial for individuals to be able to evaluate information objectively and make decisions logically and rationally. However, the low level of environmental literacy among students in Indonesia also affects their critical thinking skills and their concern for various environmental issues. Therefore, innovations in learning that are contextual and oriented toward students’ needs and engagement. The implementation of the Problem-Based Learning (PBL) model combined with a student-generated local issue approach in this study is intended to optimize students’ critical thinking skills, environmental literacy, and their sense of concern for the environmental conditions around them. This Classroom Action Research (CAR) with a quantitative approach conducted over two cycles. In each cycle, the action was carried out in one meeting. The subjects of this study consisted of 38 eight-grade students at SMPN 1 Rambipuji. The data collection techniques used in this study included tests, questionnaires, and observation. Tests were used to measure critical thinking ability, questionnaires were used to assess literacy levels, while observation was conducted to determine the implementation of learning and student activeness during the learning process. Data were analyzed using descriptive statistics to determine the improvement that occurred in each cycle. The implementation of the Problem-Based Learning (PBL) model integrated with the student-generated local issue approach is expected to provide a positive impact in the form of improved environmental literacy, ecological concern, and student’s critical thinking ability.