The learning environment is known to influence students’ success. Furthermore, it will affect the graduate’s future practice. More studies need to be made available on the correlation between dental students’ perception of their learning environment and dental graduates’ preparedness for practice. This study aims to identify this correlation, thus addressing this gap. Assessing this correlation will provide a basis for improving the learning environment and supporting graduates’ preparedness for practice. This cross-sectional study was conducted at the Faculty of Dentistry, Syiah Kuala University, and involved 101 dental graduates from 2022 to 2023. Data were collected using the Dundee Ready Educational Environment Measure (DREEM) and a modified Graduate Assessment Preparedness of Practice (GAPP) instrument. Pearson’s correlation test was used to determine the correlation between the two aspects and assess each domain’s correlation strength using Statistical Package for the Social Sciences (SPSS) version 26.0. Data analysis showed that the average DREEM score of all respondents was 147.9/200, indicating a “more positive than negative” learning environment. The average GAPP score was 201.2/238, showing that graduates have high preparedness for practice in almost all areas, including clinical skills, communication, professionalism, and management and leadership. A statistically significant, low and positive correlation was found between the DREEM and GAPP scores (rs = 0.365, p < 0.001). A significant relationship exists between students’ perceptions of their learning environment and graduates’ preparedness for practice. A positive learning environment increases students’ motivation, engagement in learning and academic achievement, further impacting graduates’ readiness for workplace practice. © Malaysian Association of Education in Medicine and Health Sciences and Penerbit Universiti Sains Malaysia.