The literature review synthesizes recent academic findings on the effectiveness of Entrepreneurship Education (EE) within Higher Education Institutions (HEIs). Moving beyond simple direct-effect models, the review explores the nuanced factors shaping EE outcomes by examining three critical themes: the psychological mechanisms (mediators) that translate EE into Entrepreneurial Intention (EI) and Entrepreneurial Alertness (EA); the influence of contextual moderators (like entrepreneurial climate and national setting); and the essential pedagogical shift toward experiential, co-created, and digital learning environments. Findings confirm that EE's positive impact is contingent and mediated by internal psychological states, such as Entrepreneurial Mindset, Perceived Behavioral Control, and Entrepreneurial Passion. Moreover, the institutional Entrepreneurial Climate acts as a powerful moderator, amplifying curricular success. Crucially, the literature advocates for moving toward authentic, action-based models—including Virtual Entrepreneurship Practice (VEP) and social network integration—to better cultivate tangible skills. Despite these advancements, the review highlights the persistent gap between Entrepreneurial Intention (EI) and actual Entrepreneurial Behavior (EB) as the primary challenge. This synthesis concludes that effective EE requires an ecosystemic, tailored approach that activates psychological mediators and prioritizes rigorous longitudinal research focused on bridging the intention-to-behavior chasm.