This study aimed to develop a model for enhancing the quality of engineering education in Iran using a qualitative approach based on grounded theory methodology. Data were collected through semi‑structured interviews with subject‑matter experts and analyzed using open, axial, and selective coding. The core phenomenon identified was the systematic gap between the current and the desired state of engineering education quality. The causal conditions included the philosophical and identity crisis, the gap between university, industry, and the labor market, and the ineffectiveness of teaching and assessment methods. The contextual conditions comprised weaknesses in educational management, deficiencies in the general education system, inappropriate academic guidance practices, and the dominance of grade‑oriented education. The intervening conditions included challenges within the educational system (inadequate funding and outdated facilities), socio‑cultural challenges (credentialism), and faculty‑related challenges (ineffective teaching methods, inadequate reward systems, and excessive workloads). The identified strategies included reforming governance policies, strengthening university–industry linkages, transforming teaching and learning processes, revising curricula and assessment systems, and reforming talent identification and cultural development. The implementation of these strategies is expected to enhance graduates' employability, foster problem‑solving engineers, and promote the development of well‑rounded individuals. The findings indicate that improving the quality of engineering education in Iran is a systemic and multidimensional challenge embedded in philosophical foundations, policies, institutional structures, culture, and implementation practices. Therefore, fragmented and isolated interventions are unlikely to produce sustainable improvements.