Background The commonness of psychological illness occurring within the university curriculum, along with the socioeconomic or behavioral status of students, is growing with the development of the deteriorating education system. It is gradually developing into a mental health issue among undergraduate students in Nepal and poses a significant challenge for public health globally. This research study aimed to determine the prevalence and factors associated with depression, anxiety, and stress among undergraduate management students in Kathmandu, Nepal. Methods: Out of 600 sample sizes, 516 students participated in the descriptive cross-sectional study carried out among undergraduate management students in Kathmandu. Depression, anxiety, and stress were measured using the DASS21 (depression, anxiety, and stress scale 21) tool, designed for self-administered data collection in Nepali and English. The questionnaire comprises four sections: socio-demographic information, depression, anxiety, and stress, to measure the different emotional states of the student.

Findings: The overall prevalence of depression, anxiety, and stress was found to be 57.8 %, 60.9 %, and 43 %, respectively, among undergraduate management students in Kathmandu, and most female students experienced it in contrast to male students. Almost all students (100 %) who participated in the research study have experienced the unnecessary pressure of college studies as the most significant cause of depression, anxiety, and stress. Students, those having less family income (< 20000 NPR per month), those breaking up with loved ones, those having no daily physical exercise, and having pressured college studies were at higher risk of experiencing depression (P=0.004, P=0.007, P=0.023, and P=0.000 respectively). The prevalence rate of extremely severe depression, anxiety, and stress was about 9.1 %, 23.8 %, and 7 %, respectively. Conclusion: The study found that undergraduate management students in Kathmandu had high rates of anxiety, depression, and stress. Special attention and necessary psychological health intervention from their respective colleges/universities and government sectors are highly recommended.