Nursing education was transferred to the tertiary sector as the result of perceived inadequacies of the hospital-based system. The degree to which tertiary-based psychiatric nursing education has, in Victoria, redressed these deficiencies is considered. This paper focuses upon research conducted with registered psychiatric nurses to ascertain their perception of the difference between tertiary and hospital-based psychiatric nursing graduates. The graduates were interviewed during their third year of study and again at the end of their first post-graduate year. The data collected from these interviews were supported by interviews with educators from the tertiary and hospital-based courses. The interview data as a whole emphasized characteristic differences between hospital and tertiary graduates and underlined the potential advantages of the tertiary course.