The rapid shift to hybrid and online learning has challenged faculty to redesign teaching for digitally mediated environments. Traditional faculty development program (FDP), often limited to awareness or knowledge acquisition, seldom lead to sustained behavioural change. The current paper presents a new framework for Competency-Based Faculty Development (CB-FDF) grounded in Competency-Based Education and Training (CBET) Level-4 principles and vocational training philosophy, emphasizing performance, reflection, long-term retention and real world application. Implemented within a structured Faculty Development Programme, faculty demonstrated competence by redesigning existing face-to-face lessons for hybrid delivery. The program followed vocational-style learning cycles of guided instruction, supervised practice, authentic task performance, microteaching and reflective feedback. Findings revealed improved pedagogical confidence, skill integration, and teaching transformation. The proposed CB-FDF framework provides an evidence-informed, replicable model for competency-based faculty development applicable across disciplines, particularly in institutions transitioning to hybrid education or preparing for accreditation under competency-based outcome standards.