This article contributes to research on music masterclasses through examining learning through observation. It investigates how students are learning as observers in this context; whether and how they will transfer their masterclass learning to their own instrumental/vocal development, and whether they have discussed learning through observation. Data were gathered from higher education students observing two masterclasses. Their responses indicate observation of technical, musical, performative and pedagogic elements. However, they also suggest limited discussion of observation and of the processes involved in implementing observational learning within their own work. The findings suggest that there is scope for enhanced learning in the masterclass, including developing perception through facilitated engagement with systematic observation and consideration of processes of transferable learning. These may have positive implications for extending learning in other contexts.