Abstract Aim The broad objective of the present study was to examine the psychological distress among young adult college and university students exposed to traumatic and stressful events of armed conflict in Kashmir, India and its association with background variables. Methods This study followed a cross-sectional research design. Data was collected from 693 college and university students by using a Semi-Structured Questionnaire and Mental Health Inventory (MHI-18). Results Findings disclosed that being a male and low monthly family income were significantly associated with higher rates of anxiety and depression. Further, data revealed that low monthly family income and living in rural areas were significantly associated with increased loss of behavioral control. Rural places of residence, affected by conflict and maternal educational backwardness, were significantly associated with higher rates of anxiety. Qualitative data regarding intra-family relationships were perceived to be disturbing by one-third of the youth. At the same time, continuous conflict had an adverse effect on mental health as disclosed by a large number of participants. Conclusion The study recommends mental health support services for Kashmiri students through institution as well as community-based approaches.