Serious concerns have been raised over the consistent academic underperformance of Yemeni students at almost all levels of university studies. This paper investigates the impact of various socioeconomic factors on the academic performance of engineering students in Taiz State, Yemen, an impoverished and unstable society. Our quantitative methodology employed a 5-point Likert scale questionnaire and targeted 596 female/male students from three engineering colleges in Taiz State. Data were analyzed using SPSS software and simple and multiple regression models to examine the impact of socioeconomic variables on academic achievement while moderating financial condition and gender. This study measured academic achievement through GPAs, student attendance, and English level. Many socioeconomic influences have been examined against academic performance, such as gender, family income, family stability, family openness, marital status, co-education, part-time jobs, and stimulant use. The results accurately specified that students’ gender considerably impacts the studied variables; moreover, low-income features of families negatively affect students’ academic performance. The outcome of this study indicated that socioeconomic variables matched well with GPA, attendance rate, and English level, but with higher matching to the attendance rate. This study highlights that university students in impoverished and unstable societies, like Yemen, are significantly affected by socioeconomic factors. It recommends coordinated efforts among government authorities, educational institutions, and community leaders to mitigate the negative impact on academic achievement and implement appropriate technologies to enhance performance. Additionally, conducting similar studies in other disciplines and communities within the country is recommended for a deeper understanding of this issue.