Introduction: Academic skill-based education is a basic tool for empowering citizens with high-level technical skills and abilities that can be used for national development. Therefore, the current research aimed to identify the components of skill-based education in higher education with a qualitative approach. Methods: The current research was conducted with a qualitative approach of thematic analysis type. The target group of the study was the faculty members of Mohagheg Ardabili, Allameh Tabatabai, Shahid Beheshti, and Tehran universities in Iran. The participants included 15 faculty members who were selected by purposeful sampling. Semi-structured interviews were used to collect data. Results: In total, 113 free codes were extracted from the content of the interviews. After merging the similar codes, finally, 98 codes were extracted and classified into 16 similar sub-themes and finally categorized into 7 main themes. Categories of policy-making, skill-based curriculum, university mission, teaching methods, entrepreneurship, empowerment of faculty members, and technology development were identified as the most important components of skill-based education from the point of view of faculty members. Conclusion: According to the findings of the research, it can be said that institutionalization of skill-based education in the university can play an effective role in the employment of graduates.