A student-centered and innovative “Smart City Challenge” Ideathon was held at the Innovation Center of Nakhchivan State University. Organized by the University’s Technological Transfer and Innovation Sector in collaboration with the Azerbaijan Innovation Center, the event aimed to identify existing challenges within urban environments, generate creative ideas focused on solving these issues through innovative approaches, and enhance students’ analytical thinking, teamwork, and technological skills. The two-day ideathon was organized within the framework of competitions designed to foster an innovation and entrepreneurship ecosystem at the university. More than 70 students from various academic disciplines applied to participate, while 41 students, grouped into 10 teams, competed against one another in the challenge. On the first day of the ideathon, students participated in training sessions focused on developing their ideas, building collaborative partnerships, and creating result-oriented projects with the support of mentors. During these sessions, participants were introduced to the differences between employment and entrepreneurship, methods for transforming ideas into reality, presentation techniques, marketing strategies, and other relevant topics. On the second day of the ideathon, participants demonstrated the power of innovative and creative thinking, as well as effective teamwork, by presenting their projects before the jury and competing for first place. During the technology-focused competition, which promoted a culture of innovation, discussions centered on the challenges, opportunities, and prospects that future entrepreneurial leaders may encounter, drawing on the ideas and solutions presented by the teams. The participants developed innovative solution concepts for the smart city ecosystem in a variety of areas, including digital services, transportation and mobility, energy efficiency, environmental sustainability, urban infrastructure, smart parking systems, and smart healthcare facilities. The competition, which was conducted around a variety of ideas and focused on innovation-driven projects, concluded with the selection of the winning teams following a highly competitive contest among teams such as “Future City,” “Unity,” “Dewayn,” “AI with Doctor,” “T4C,” “Innovatika,” “City Guard,” “Soft Nova,” “Nova,” and “InfraX.” At the end of the competition, “T4C” was awarded third place, “InfraX” secured second place, and “Soft Nova” emerged as the first-place winner. The winning teams were presented with certificates of achievement, and the event concluded with a commemorative group photograph.