From 2007, the scale of graduate education in China has been expanding year by year. So, does graduate education have an impact on China's scientific and technological innovation? Has China's graduate education promoted the development of the real economy? Based on provincial panel data from China from 2007 to 2021, this study evaluates the impact of graduate education on real economic development with mediating effect model. On this basis, a panel threshold model is established, and the differences in the impact of regional disparities in graduate education on the real economy are explored. The research results show that graduate education has a significant promoting effect on the development of the real economy. In regions with lower educational levels, graduate education has a stronger effect on promoting the development of real economy. Technological innovation plays an intermediary role in the relationship between graduate education and the development of the real economy.According to the threshold variable of technological innovation, there exists a single threshold effect in the country and regions with higher education levels, gradually increasing the positive impact on the development of the real economy. The specific policy suggestions for promoting the development of real economy in relation to graduate education mainly include further balancing the investment in graduate education, coordinating the development of graduate education with technological innovation, and strengthening the flow of resources between provinces.