<p>This study investigates the effects of internship education programs on graduates’ employability in Saudi Arabian higher education institutions, focusing on the mediating role of students’ IT skills. A quantitative approach using partial least squares structural equation modeling (PLS-SEM) was employed to analyze data from 325 graduate students across four Saudi Arabian universities. The findings revealed that students’ IT skills significantly affected their employability. Organizational resources, program design and structure, and program relevance positively affect students’ IT skills, which fully mediates the relationship between these internship program aspects and graduates’ employability. Surprisingly, internship duration, intensity, mentorship, and supervision did not directly influence IT skills or employability. These results emphasize the importance of well-designed, industry-relevant internship programs that prioritize IT skill development to enhance graduates’ employability. This study contributes to the literature on internship education and employability in Saudi Arabian higher education by providing empirical support for experiential learning theory in the context of IT skill acquisition through internships. It also offers insights into how internships can support the Saudi Vision 2030 objectives. This study highlights the need for collaboration among higher education institutions, policymakers, and industry stakeholders to optimize internship programs. Limitations include the cross-sectional nature of the data and the focus on specific internship aspects and IT skills. Future research could employ longitudinal designs and explore a broader range of skills and program components.</p>