Entrepreneurial education (EE) research has identified several trends in fostering students’ entrepreneurial mindsets with a growing focus on sustaining entrepreneurial activities, covering topics such as ideation, business planning, market analysis, strategic management, and innovation. Nevertheless, the heightened rate of startup failures urges entrepreneurship educators to reconsider failure in entrepreneurship and how it is addressed within entrepreneurship curricula. This research aims to examine the status quo of the topic of entrepreneurial failure management in current curricula across universities. It further proposes an applicable method for incorporating productive failure into EE. The study’s findings reveal a notable gap in the inclusion of business failure as a formal topic of study. Instead, current curricula emphasize the positive and successful aspects, potentially leaving students underprepared to confront challenges and setbacks in their entrepreneurial ventures. Furthermore, the frameworks that guide students in navigating failures in entrepreneurial pedagogies are still undetermined with a focus on preventing failure rather than navigating it. At one level, this research aims to examine the status quo of the topic of entrepreneurial failure management in current curricula across universities. It further develops the applicable method to incorporate productive failure into the learning pedagogy. The design science research approach (DSR) was considered, offering theoretical framework that identifies field challenges while aiming to develop futuristic, applicable solutions. This chapter outlines a step-by-step process aligned with the DSR method, guiding educators through identifying problem areas, analyzing the type and root cause of the failure, creating productive responses, and evaluating and sharing outcomes. The study provides educators with reliable practical applications to implement in class at each step of the process.