Excessive internet usage creates abundant problems like dependency and addictive behaviour. Internet addiction (IA) is becoming a universal public health concern. The isolated group of Malaysian students studying in offshore campuses in India is more susceptible to IA due to language, culture, ethnicity, and food habit differences, leading to a lack of communication with native students. The study aims to determine the prevalence of IA and its influence on academic, non-academic, and psychological aspects in Malaysian medical students. A cross-sectional study was conducted on 170 offshore Malaysian medical students using Young’s Internet Addiction Test (Y-IAT) questionnaire of 20 items. The difference was tested by student’s t-test and the association between IA and other factors by chi-square test with a statistical significance at 5%. The study observed a 46% prevalence of IA in offshore Malaysian medical students. Male students were more prone to IA compared to females. The amount of time spent on entertainment per day was significantly (p = 0.004) associated with IA. The present study revealed that the prevalence of IA was significantly associated with academic performance (χ2 = 33.670, p = 0.001) and psychological disturbances like sleep disturbance due to late-night log-ins (χ2 = 41.013, p = 0.001), felt life would always be joyless (χ2 = 27.272, p = 0.001) and, depressed moody without internet (χ2 = 33.347, p = 0.001). The present study revealed that IA has an adverse impact on students’ academic activities as well as on psychological health. Medical teachers and schools should identify students who are prone to and affected by IA and recommend interventions based on their needs. This study recommends that students utilise their valuable time in offline activities like regular sports, cultural exchange programmes, fun activities, yoga, meditation, and learning new skills and languages. These activities may help students prevent overindulgence with the internet, encourage the overall growth of promising doctors, and build a healthy society.