Abstract The current research aims at answering a major question: What is the reality of overeducation at the higher education level in Egypt & What's its impact on the labour market ? through presentation of the conceptual framework that deals with the concept of overeducation, indicators and explanatory theories, the shape of the education system in Egypt, the graduate site and the impact of overeducation on the labour market.It also aims at identifying the requirements of balancing the outcomes of higher education (postgraduate studies) with the needs of the Egyptian labour market. The researchers used the descriptive method to present the literature review on research and identify the theories of overeducation. At last, this research is limited to postgraduates studies (master's and doctorate). It also concluded with several recommendations, the most important of which: review the education policy applied by the ministry of higher education with a new view to reduce wastage because of overeducation among Egyptian university graduates.