Purpose: This study investigates the effect of entrepreneurship education in terms of the development of entrepreneurial knowledge and skills, on graduate students' entrepreneurial alertness and the mediating role of the entrepreneurial mindset. Design/methodology/approach: The study collected data using questionnaires from graduate students at an Iranian university who had engaged with entrepreneurship education. The questionnaires collected data on the respondent's demographics and adopted previously validated measures to measure entrepreneurship education, entrepreneurial alertness and entrepreneurial mindset. Statistical techniques were applied to test validity and structural equation modeling was undertaken to test the hypotheses. Findings: The findings demonstrated that entrepreneurship education has a positive and significant effect on entrepreneurial alertness and entrepreneurial mindset. In addition, entrepreneurial mindset was found to have a positive and significant role in mediating the relationship between entrepreneurship education and entrepreneurial alertness. This finding highlights the importance of educators seeking to build an entrepreneurial mindset within entrepreneurship education, in addition to developing students' entrepreneurial alertness by focusing on opportunity identification and recognition. Originality/value: The study addresses a gap in the literature as to the relationship between entrepreneurship education, entrepreneurial alertness, and the entrepreneurial mindset, and furthers the understanding of the impact of entrepreneurship education. The results inform educational practice, as ensuring students recognize entrepreneurial opportunities is an important element of venture creation.