Contextualized teaching and learning, otherwise called "Contextualized Instruction" (CI), is a methodology that includes dynamic students in the learning process to investigate ideas acquired through the students' information and experience. This study was conducted to: determine the students' problem-solving skills and engagement towards mathematics; determine the level of students' problem-solving skills before and after exposure to Contextualized Instruction (CI); ascertain the level of students' engagement towards mathematics before and after exposure to contextualized instruction; identify the difference in the students' problem-solving skills before and after the exposure to CI; and compare the difference in the students' engagement before and after the exposure to CI. A mixed-method sequential explanatory research design was employed in the study. It was conducted at Loyola High School, Don Carlos, Bukidnon. Students in Grade 8 were the research participants of the study. Results showed that students' problem-solving skills during the pretest were very low, and during the posttest and retention tests they showed high problem-solving skills. Moreover, there was an improvement in students' problem-solving skills based on the mean scores on the posttest and retention tests. Students' mathematics engagement levels in cognitive, affective, and behavioral domains were high at levels before and after the treatment. Thus, there is a significant difference in the students' problem-solving skills before and after exposure to CI. Additionally, there is a significant difference in the students' engagement in mathematics before and after the exposure to CI.