This study investigated the impact of entrepreneurship course characteristics on students' entrepreneurial intentions through fostering entrepreneurial self-efficacy and study engagement. Furthermore, the moderating role of student needs differences was examined. Data were collected among 302 Chinese undergraduates who enrolled in an entrepreneurship course. Students filled in a questionnaire before and after the course. Results of structural equation modeling revealed that a challenging learning environment positively related to entrepreneurial self-efficacy and study engagement, which in turn related to entrepreneurial intentions. Teacher-student relationships only related to study engagement. In addition, a challenging learning environment related stronger to enhanced study engagement for the high need for achievement students, and teacher-student relationships significantly and positively related to entrepreneurial self-efficacy only among students with a high need for affiliation. The findings can be used to improve entrepreneurship education. Theoretical and practical implications will be discussed.