The objective of the research was to examine the Mental Health Literacy (MHL) and Depression Literacy (DL) levels in young adults in Bengaluru, India, through a cross-sectional research method. A group of 211 individuals (80 males, 131 females) were selected through purposive sampling. Information was gathered through the administration of the “Mental Health Literacy Scale” (MHLS, O’Connor and Casey in Psychiatry Res., 2015 [1]) and the “Depression Literacy Questionnaire” (D-Lit, Griffiths et al. in Br. J. Psychiatry 185:342–349, 2004 [2]). Jamovi version 2.3 software was utilized for the data analysis involving descriptive statistics, Spearman’s correlation, Mann–Whitney U test, and Kruskal–Wallis test. The findings show substantial variations in MHL and DL among young adults, with females showing greater proficiency in these areas compared to males. Moreover, variations in MHL were noted across academic disciplines, with Arts students exhibiting lesser literacy skills in comparison to those in Commerce and Science streams. Nonetheless, there were no noticeable variations in MHL and DL across occupations. These results highlight the importance of implementing focused measures to improve MHL and DL in young adults, especially in males and students in the Arts field. Enhancing understanding of depression and mental health helps break down misunderstandings and lessen stigma, which can impede help-seeking. It enables people to identify early indications of mental health issues, promotes prompt seeking of assistance, and improves availability of suitable resources and support networks. Consequently, these actions could result in better control of mental health issues, improve general welfare, and greatly enhance mental health results for individuals and communities alike.