This study provides an empirical analysis of the relationship between informal sector dynamics and educational outcomes in urban Egypt. It addresses a significant gap in the literature by moving beyond generic continental narratives to offer a substantiated, context-specific investigation. Employing a mixed-methods research design, the analysis integrates quantitative data from two recent Egyptian labour force surveys with qualitative insights from 30 semi-structured interviews conducted with informal workers and educators in Greater Cairo. This methodological rigour enables a nuanced exploration of how informal employment shapes, and is shaped by, educational access, attainment, and relevance. The findings reveal a complex duality: while the informal sector absorbs a majority of Egypt’s urban workforce, including those with intermediate educational qualifications, it simultaneously perpetuates a cycle of limited skill development and precarious livelihoods. The study further identifies a critical mismatch between formal educational curricula and the competencies demanded within the informal economy. Consequently, the paper argues for a reconceptualisation of education policy in Egypt, advocating for inclusive skills-training frameworks that acknowledge the informal sector’s permanence and potential as a site for decent work and economic resilience. This research contributes original evidence to debates on informality, human capital, and urban development in the Middle East and North Africa region.