The persistent gap between industry expectations and academic preparation has become a critical concern in higher education systems worldwide. Employers increasingly report that graduates, despite possessing formal qualifications, often lack practical skills, workplace readiness, and adaptive competencies required in contemporary professional environments. This research paper critically examines the divergence between what industries expect from graduates and what academic institutions typically deliver. Using an extensive review of global literature, policy documents, and empirical studies, the paper explores key dimensions of industry expectations, current academic preparation models, sources of misalignment, and the consequences for graduate employability. Conceptual frameworks are proposed to illustrate the skills gap, and strategic recommendations are provided for curriculum reform, pedagogy innovation, assessment redesign, and industry–academia collaboration. The study contributes to ongoing debates on employability-oriented education and provides actionable insights for educators, policymakers, and industry stakeholders.