This study examined the role of entrepreneurial skills development in reducing youth unemployment in Somalia by exploring how entrepreneurship skills can support youth in creating businesses, improving self-employment opportunities, and reducing reliance on limited formal employment opportunities. The study adopted a descriptive-correlational research design, targeting 480 youths in Mogadishu, Somalia. A sample size of 218 respondents was selected using Yamane’s formula. Data were collected through structured questionnaires and analyzed using the Statistical Package for Social Sciences (SPSS) using descriptive statistics, Pearson correlation, and regression analysis. The findings revealed that entrepreneurial skills development has a significant positive influence on reducing youth unemployment in Somalia. Most respondents agreed that entrepreneurship training improves business management skills, enhances innovation, and enables young people to establish and sustain businesses. The correlation results showed a strong positive relationship between entrepreneurial skills and youth unemployment reduction (r = 0.625, p < 0.001). Regression analysis further indicated that entrepreneurial skills significantly predict unemployment reduction, explaining 85.5% of the variation. The study contributes to entrepreneurship and human capital theory by demonstrating that skills development increases youth capacity for employment creation. It recommends expanding entrepreneurship education, improving access to financial support, strengthening vocational training, and creating supportive policies for youth-owned enterprises to promote sustainable economic development in Somalia.