This is the first study done to ascertain which factors significantly determine graduation and non-graduation in the Diploma courses at Fiji Institute of Technology. It is a quantitative study and analyses of the effects of the variables sponsored/private, entry level, race, grade point average, course sex, age and rural/urban on graduation and non-graduation. The significance of this study lies in determining which improvements are necessary in order to increase the number of graduates and thus make more effective use of the physical and human resources. Resource utilisation gains added importance because of its national implications. The Diploma graduates are the main source of middle level technical manpower for Fiji; a developing country which since its independence in 1970, has made satisfactory social, political and economic progress. For the period under study, data analysis shows that the percentage of students graduating was 40.8. Furthermore, the major finding was that Government sponsored ethnic Indian male students with New Zealand University Entrance as entry level, belonging to the 24+ age group produced statistically significant results. It has been recommended that both the Fiji Institute of Technology and the Government of Fiji should increase and strengthen Government sponsorship of Diploma students. Fiji Institute of Technology in consultation with industry should work out effective strategies such as better supervision and the monitoring of sponsored students' progress throughout the course and provision of an increased variety of work experiences, in order to improve the weaker areas of practical experience during the course. Since this is the first such study, further research in areas such as the requirements of the Diploma curriculum and the availability of training facilities and equipment, is recommended.