The aim of this study is to investigate the model of the effects of learning environment on graduates' competencies. The analysis was based on the responses to a questionnaire of 2,988 graduates from Gadjah Mada University, Indonesia. The model was analyzed using structural equation modelling. The tested model indicated a good fit model with χ 2 (199, N = 2988) = 1773.17, p = .000, RMSEA = .051, CFI = .98. The results suggest a significant positive influence of learning environment on graduates' competencies.