Background: As the prevalence of hepatitis B continues to rise in Pakistan, our study focused on educational institutions in the state of Azad Kashmir due to the complete absence of data on this scenario concerning college populations. We aimed to assess the prevalence of hepatitis B and identify associated risk factors among the population of postgraduate colleges in Muzaffarabad city, situated in Pakistan-administered Kashmir. Methods: In this cross-sectional study, rapid immuno-chromatographic tests and real-time quantitative PCR methods were used to identify hepatitis B infection, while serum ALT levels were tested to assess their diagnostic associations with the infection level. The evaluation of risk factors was conducted through interviews using a questionnaire, and the obtained data were subjected to statistical analysis. Results: The study revealed 1.3% of participants positive for HBsAg, 0.6% tested positive for HBV, and 0.1% tested positive for HBeAg. Male participants were found to be more likely to test positive for HBsAg (odds ratio of 4.026, p=0.0074), and participants aged 30 years and above exhibited a higher prevalence (p<0.0001) for hepatitis B. The average ALT level in the HBsAg positive participants was significantly higher (p<0.0001). A significant association between HBsAg positivity and various factors including married status (p=0.0005), doing jobs (p=0.0004), getting cuts at hair salons or parlours (p<0.0001), hospitalization history (p<0.0001), blood transfusion (p<0.0001), and residence in hostels (p=0.0015) was observed. Only 0.4% participants were vaccinated against hepatitis B virus. Conclusions: Our study revealed a significant prevalence of hepatitis B among postgraduate colleges in Muzaffarabad city, emphasizing the need for targeted awareness and prevention efforts. Identifying key risk factors such as blood transfusion, hospitalization, and residence in hostels underscores the importance of tailored initiatives. Considering the low vaccination rate, comprehensive actions, including routine screening, prioritized vaccination campaigns, and the implementation of multi-marker-based testing, are essential to mitigate the impact of hepatitis B.