This paper explores the benefits of an Industry-Based Learning (IBL) program in developing professional skills in graduates from Product Design Engineering (PDE) and Industrial Design (ID) degree programs at Swinburne University of Technology. Students in both courses are encouraged to participate in the IBL program, where six to twelve months are spent working in a relevant industry placement. This occurs one year prior to completion of the undergraduate degree. The IBL program provides students with exposure to a range of different professional practices, including project management, interpersonal skills, schedules and budgets. These are activities and aptitudes developed as a specific response to a professional context that can not be replicated in the university environment. Value of the industry experience is evident in the attitudes and work ethic demonstrated by students when they return in their final year of study. This will be substantiated by contrasting outcomes of students who have and have not completed an IBL program in addition to graduate employment. Higher levels of interpersonal skills in relation to peers, staff and external stakeholders is also consistently observed by teaching staff in students who have completed IBL. The paper both validates and evaluates the IBL program at Swinburne in PDE and ID, looking at how the program can improve in ID to increase the proportion of students who participate. This is particularly important as professional skills gap in industry readiness of ID graduates is still present, as supported by literature.