This study attempted to examine students' experiences on collaborative work with peer tutoring in projects. The study also focused impact of peer tutoring on remedying misconceptions. The study was conducted in the context of an operating system course in which 30 pre-service ICT teachers are the participants. Data were gathered from pre-tests, post-tests and clinical interviews. Pre-tests were used for determining misconceptions and post-tests for determining change in misconceptions after the process. The results showed that the deficiencies in conceptual understanding may be remedied by conducting interactive peer-tutoring applications. The study put forward some evidences that; peer tutoring may provide a collaborative environment since it is used in a design based environment. Recommendations for delivery practices using design-based projects in conceptual learnings are also included.