<p>Teaching literature to L2 learners demands methodological training and innovative strategies to bring effectiveness in learning. Problem based instructional strategy is being widely used to determine its impact on learner’s achievement, retention, attitude etc. This paper explores the impact of Problem based learning method (PBLM) and Traditional lecture method on achievement of L2 learners in the learning of literature at grade XII in Pakistan. An experiment was conducted on 67 students, 34 for control group and 33 for experimental group, of Federal Government postgraduate college H-8 Islamabad. Pre-test and post-test design was used to compare students’ achievement. Grade-XII English book was selected for lessons to be taught by PBLM and traditional lecture method. The pre-test and post-test was administered according to the paper pattern of Federal Board of Intermediate and Secondary Education Islamabad. The collected data was analyzed statistically. The results showed that there was a significant difference between the achievement score of experimental group and that of the control group. The result also showed that Problem based learning method was more effective in enhancing achievement level of the students and helpful for teaching literature to L2 learners. It was recommended that PBLM may be adopted for literature teaching at XII grade level.</p>