Background <p>Diabetes is a leading cause of death and disability in lower-middle-income countries, including Bangladesh, where the rising prevalence of type-2 diabetes poses a significant burden on healthcare systems and individuals. This study aimed to evaluate the knowledge about type-2 diabetes among university students in Bangladesh.</p> Materials and methods <p>A cross-sectional survey was conducted at the Bangladesh University of Health Sciences from October to December 2023. A total of 380 undergraduate students from three faculties participated in this study. Data were analyzed using one-way ANOVA to explore mean difference and a multivariate logistic regression model to identify significant predictors of knowledge.</p> Results <p>Overall, 60.5% of students had above-average knowledge about type-2 diabetes. Factors such as gender, residence, academic performance, and family history of diabetes significantly influenced overall knowledge (<i>P</i> &lt; 0.05). Domain-specific knowledge was also shaped by gender, residence, source of information, and university faculty. Better academic performance (AOR:1.96, CI:1.22–3.14) and family history of diabetes (AOR:1.97, CI:1.21–3.21) were more likely to have higher knowledge than their counterparts.</p> Conclusion <p>A large portion of students had below average knowledge about type-2 diabetes. Targeted health education and awareness programs are crucial to address knowledge gaps, particularly among rural students and those without family exposure to diabetes.</p>