Since young adults (i.e., aged between 18 and 30) are generally more flexible and conscious of economic and environmental concerns, it is essential to assess their travel perceptions and tendency to shift towards sustainable transportation modes. Therefore, this research aims to evaluate the acceptance of carpooling (CP) in the younger population to alleviate traffic congestion, fuel demand, and pollution. This study was conducted in Islamabad, a fast-growing city in Pakistan with a high percentage of young residents, to evaluate travelers’ perceptions, mode choice decisions, and potential acceptance of CP. An online questionnaire-based survey was developed and distributed to collect a total of 656 responses from the young adult population. Various factors influencing travel perceptions, mode choice, and tendency to carpool were categorized and analyzed using confirmatory factor analysis, stepwise, and mediated multiple regression analysis. Thereafter, the tangible impacts of CP, including reduced traffic congestion, fuel consumption, and emissions resulting from the potential adoption of CP by the younger population, were quantified. The findings imply that young travelers’ mode choice mediates the relationship between travelers’ perception and the tendency to carpool. The outcomes also affirm the impact of demographic variables, including gender and education levels, on the willingness of the young adult population to shift towards carpooling. Furthermore, results predicted that adopting CP, especially by younger adults, may reduce by about 33.6% the number of private vehicles in Islamabad. The findings of this study could offer helpful insights for transport planners, commercial carpool service operators, environmentalists, and policymakers to promote carpool systems, especially among young adults.