Work-integrated learning (WIL) can significantly benefit student employability, institutional graduate outcomes, and quality talent pipelines. However, there are many caveats to this, such as course-wide flexible and scaffolded design, sustained external partner engagement, adequate resourcing, and ongoing evaluation that informs quality, inclusive practice. This article unpacks the challenges and opportunities for advancing WIL in Australian higher education, recognising that many of these extend to other regions and education systems. Managing challenges is critical to fulfilling WIL's potential for social transformation and overcoming inequality, particularly given stakeholders' expectations of WIL (and potential over-reliance on it).