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The purpose of the research is to gain a description and explanation of the causal relationship between observational learning in industrial work practice and soft skills, specifically the communication skill and problem-solving skill. Based on the purpose, the research employed the explanatory survey method. To test the hypotheses in this research, Structural Equation Modelling (SEM) was used. The research sample consisted of 423 twelfth grade Accounting Department students of state vocational high schools in Tangerang Regency who have completed their industrial work practice or internship. The sample was taken with random sampling technique. The instrument used to gather data was a questionnaire whose validity and reliability were tested using SPSS. The results of the research proved that observational learning has a direct effect on communication skill, and communication skill has a direct effect on problem-solving skill. Observational learning has an indirect effect on problem-solving skill, particularly because of its relation to communication skill. An important new finding of the research is the correlation between observational learning and communication skill and problem-solving skill. The new finding becomes a reflection for students regarding the weaknesses and strengths of observational learning modality that they have so that they can quickly adapt to the learning models in the industrial work practice