AbstractThe worked example effect has been well documented within the framework of Cognitive Load Theory (CLT), which suggests that teaching with examples would be superior to engaging in unguided problem solving, particularly for novices, as using worked examples would reduce their cognitive load, compared to solving problems, thus facilitating knowledge retention. This paper, using multiple-step mathematics problems, reports an experiment investigating the micro level of the worked example effect on learning solution steps, from the perspective of cognitive load and challenge (as a relevant affective, motivational factor), testing the worked example effect with a transfer test. The results favoured worked examples on both the retention and transfer tests after learning and showed that using worked examples would reduce cognitive load and impose less challenge on each step during learning.Keywords: Cognitive load theoryworked example effectcognitive load and challengesolution stepsretention and transfer tests Authors contributionsOuhao Chen: conceptualisation, research design, data analysis and writingEndah Retnowati: data collection and research designBoBo Kai Yin Chan: data analysisSlava Kalyuga: conceptualisation and writingDisclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis collaborative research is funded by Leverhulme Visiting Professor grant (VP2-2021-006) of Leverhulme Trust to the first author and last author.