The objective of this National Science Foundation (NSF)- funded undergraduate engineering training project is to introduce nanoscale science and engineering through an innovative use of a technical elective sophomore-level mechatronics course, followed by an Accreditation Board for Engineering and Technology (ABET)-mandated senior-level engineering capstone design project. A unique partnership between University of Arizona's department of surgery, its neurosurgical division, and the College of Engineering presents a creative environment, where medical residents serve as mentors for undergraduate engineering students in developing product ideas enabled by nanotechnology. Examples include: a smart ventricular peritoneal (VP) shunt with flow-sensing; a bio-resorbable inflatable stent for drug delivery, and a hand-held non-invasive eye tonometer. Results from the first year of the student projects, as well as qualitative assessment of their experience, is presented. Several institutional challenges were also identified.