Given the increasing trend of engineering graduates’ migration in recent years, the aim of the present study is to explain the phenomenon of engineering graduates’ migration. This research employed a qualitative approach based on Grounded Theory. The participants included faculty members in engineering and sociology from Ferdowsi University of Mashhad, as well as experts and managers in the field of engineering. Using purposive sampling, individuals rich in relevant experiences and information were selected in line with the research objective, and data collection continued through in-depth, semi-structured interviews until theoretical saturation was achieved. Data analysis was conducted through qualitative content analysis in three stages—open, axial, and selective coding—using MAXQDA 20 software. A total of 429 open codes were extracted, and through conceptual similarity and commonalities, main categories and subcategories were identified and placed within the paradigm model of Grounded Theory. The results indicate that the factors underlying the phenomenon of engineering graduates’ migration include, in causal conditions: push factors of the origin and pull factors of the destination; in contextual conditions: migration facilitation factors; in intervening conditions: migration support factors; and in strategies: intra-university damaging factors and extra-university deficiency factors. Ultimately, the main consequence of the migration phenomenon among engineering graduates is the weakening of the country’s technical and developmental capacities.