Background: Physical activity plays a crucial role in maintaining overall health, yet global trends indicate a decline in these levels among university students. Gender differences, environmental access, and lifestyle choices have been identified as significant factors influencing physical activity levels. Previous studies have offered insights into these dynamics, yet gaps remain in understanding the comprehensive impact of various determinants on physical activity among the youth. Objective: This study aimed to assess the levels of physical activity and their association with different factors among university students, with a focus on identifying gender disparities and the influence of environmental and lifestyle factors on physical activity levels. Methods: A cross-sectional study was conducted among students aged 18 to 30 years at Akhtar Saeed Medical and Dental College (AMDC) and the University of Lahore (UOL) from July 2022 to January 2023. Ethical approval was obtained, and a sample size of 150 students was determined using EPI software. Data on physical activity levels were collected using the International Physical Activity Questionnaire (IPA-Q) and analyzed using SPSS version 25. Chi-square tests were applied to assess the association between physical activity levels and factors such as computer game play, music listening, sports participation during school, parental encouragement, and institutional support. Results: Among the participants, a significant gender difference in physical activity levels was observed, with males engaging more in strenuous activities. The study found a high association of physical activity with being an active sportsman during school and college (Chi-Square = 7.194, P-value = 0.02) and listening to music (Chi-Square = 9.27, P-value = 0.01). A majority of the students fell into the mild physical activity category, with fewer participants involved in moderate and high physical activity levels. No significant association was found with computer game playing, parental encouragement, or institutional support for physical activity. Conclusion: The study highlights significant gender differences in physical activity levels among university students, with males being more active. Early sports involvement and music listening emerged as key factors associated with higher physical activity levels. The findings suggest the need for targeted interventions to enhance physical activity, particularly among female students, and promote a more active lifestyle within the university setting.