This paper aims at identifying how the higher education internship programs affect meeting the demands of labor market in Bahrain and contribute to the employability of graduates. A designed survey was developed and distributed among a sample of the Bahraini higher education graduates, the analysis of which showed that the Internship Programs adopted by the different Bahraini higher education institutes contribute to meeting the demands of the labor market in Bahrain. Quantitative data was supported by qualitative information gathered through structured interviews with officials in charge of the internship programs in some of the higher education institutes to help explain the quantitative results. The study recommended the sustainment of the coordination and integration between the higher education from one side and the labor market from the other, to develop academic and internship programs that are compatible with the skills required by the labor market. Moreover, the study recommended a periodical evaluation for the higher education institutes to assure the provided internship programs are aligned with the labor market’s objectives and strategies, in addition to the contribution such programs have to the Kingdom’s development aimed by its 2030 vision.