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This study made use of pre-post research method using descriptive statistics. It aimed to determine the use of the industry exposure program on machine shop knowledge, attitudes, habits and skills development of mechanical engineering students from selected academic institutions in Davao Region, namely: the University of Southeastern Philippines (USEP), the Ateneo de Davao University (AdDU), the University of Mindanao (UM), and the Rizal Memorial Colleges (RMC). Paired at-test was used in treating the data to determine the significance of the level of machine shop skills and knowledge and attitudes and habits. Twentysix fourth year mechanical engineering students who were enrolled in the industry exposure of on-the-job training (OJT) were the respondents of the study. The findings of the research show that the level of competency in over-all skills of the students was rated low before the industry exposure. After the industry exposure the students obtained moderate level in the over-all skills. In the shaper and milling operations the students got high rating. These results indicate that the industry exposure contributed significantly to the students knowledge, attitudes, skills and habits (KASH). There is significant difference in levels of achievement in all areas of attitudes and habits before and after industry exposure.