Entrepreneurship is increasingly seen as a key force behind economic growth, innovation, and job creation, especially among young graduates. However, even though engineering students often possess strong technical skills and problem-solving abilities, many of them hesitate to take the step toward starting their own ventures. This study explores the gap between students’ interest in entrepreneurship and their actual involvement in startup activities. The main objective of the research is to understand the level of entrepreneurial interest among engineering students and identify the factors that influence their inclination toward startups. A quantitative research approach was adopted, and primary data was collected from 300 engineering students through a structured questionnaire. The collected data was analyzed using SPSS, applying tools such as descriptive statistics, Karl Pearson correlation, Chi-square test, and ANOVA to examine relationships and differences among variables. The findings indicate that most engineering students have a positive attitude toward entrepreneurship. Key factors such as entrepreneurship education, self-efficacy, social influence, and institutional support play a significant role in shaping their entrepreneurial intentions. However, despite this interest, a noticeable gap exists between intention and actual startup initiation. This gap is mainly attributed to challenges like fear of failure, lack of financial resources, and limited practical exposure. The study concludes that improving hands-on entrepreneurship education, strengthening institutional support, and providing better exposure to real-world startup environments can help bridge the gap between academic learning and entrepreneurial action.