Following his graduation from Oregon, Krause began coaching high school sports in 1952 at
Milwaukie High School in
Milwaukie, Oregon. He coached two high school basketball teams to the Oregon state basketball championship:
Franklin High School in 1956 and
North Eugene High School in 1963. He also coached
Sheldon High School's baseball team to a State runner-up finish in 1966. In 1968 Krause moved to the college coaching ranks when he became the first head coach of the Lane Community College Men's Basketball team. In two seasons at Lane, Mel compiled a 31–13 record (14–6 in 1968–69 and 17–7 in 1969–70). In addition to being the head coach of Men's Basketball, Mel helped the school start a varsity baseball program in 1969. While he was working as an assistant baseball coach to Irv Roth, the inaugural 1969–70 baseball team advanced to the NJCAA Region 18 tournament. In 1970 Krause was named head baseball coach at Oregon, replacing his former coach,
Don Kirsch. In 11 seasons, Krause's teams won two
Pacific-8 Conference Northern Division championships (1972 and 1974). Krause returned to high school coaching, ending his coaching career at
Newberg High School in 1992. Following his coaching career, he worked as a baseball
scout for the
San Francisco Giants,
Philadelphia Phillies and
Los Angeles Dodgers. ==Illness and death==