Abstract: Underemployment problems and job stress of post grdaute students have gradually become a serious problem. Yet there is a scarcity of research that has attempted to identify the nature, extent and specificity of the problem. This paper aims to find out whether entrepreneurship education can improve job satisfaction and promote employment by finding the impact of entrepreneurship education on increasing employment performance. This paper surveys the post graduate students of Faculty of Commerce and Management Studiesfrom University of Kelaniya and attained their entrepreneurship and employment performance value. The paper draws a conclusion by making correlation analysis and multiple regression analysis. The results showed that entrepreneurship has a positive impact effect on the employment performance. It is confirmed entrepreneurship education has a positive effect on employment performance of post graduate students. The paper made a link between the entrepreneurship research and the employment study. And this study provided a theoretical supporting to the concept of “Encouraging entrepreneurship to drive employment”. This provided the rationality and necessity of entrepreneurship education also.