A shirt dress is the dress that looks like a button-up shirt but is actually a dress. This works for smart casual graduation because it reads as pulled together without being formal. A shirt dress in a neutral or muted color paired with simple shoes and accessories looks effortless and considered. The key is fit. A shirt dress should skim your body rather than cling or hang shapeless. For graduation you can dress it up slightly with jewelry or keep it simple and clean. These shirt dresses work because they have inherent structure and a professional quality without needing to commit to formal wear.