Localized direct electron heating (EH) by mode-converted (MC) ion cyclotron range of frequencies (ICRF) waves in D(H) tokamak plasmas has been clearly observed for the first time in Alcator C-Mod. Both on- and off-axis (high field side) mode conversion EH (MCEH) have been observed. The MCEH profile was obtained from a break-in-slope analysis of electron temperature signals in the presence of radio frequency shut-off. The temperature was measured by a 32-channel high spatial resolution (⩽7 mm) 2nd harmonic heterodyne electron cyclotron emission system. The experimental profiles were compared with the predictions from a toroidal full-wave ICRF code TORIC. Using the hydrogen concentration measured by a high-resolution optical spectrometer, TORIC predictions were shown qualitatively in agreement with the experimental results for both on- and off-axis MC cases. From the simulations, the EH from MC ion cyclotron wave and ion Bernstein wave is examined.