Background and Objective Sleep is an important physiological process for humans. Students of tertiary institutions, especially those at the university, are often reported to have poor sleep quality due to changing social opportunities and increasing academic demands. This study aimed to investigate the prevalence of poor sleeping quality and its relationship with academic performance and psychological distress among university students in Malaysia.Methods An online questionnaire-based, cross-sectional study was conducted among students of tertiary institutions in Malaysia. The questionnaire consisted of respondents’ demographics, Pittsburgh Sleep Quality Index (PSQI), Epworth Sleepiness Scale (ESS), Horne-Ostberg Morningness-Eveningness Scale (MES) and Depression-Anxiety-Stress Scales (DASS-21). Simple and multiple linear regression were used to identify the relationship between the independent and dependent variables (PSQI score and MES score).Results Of the 403 respondents, about three-fourths were poor-quality sleepers. The cumulative grade point average (CGPA) was the only factor with a significant linear and positive relationship with the PSQI score. Only the depression and anxiety scores showed a significant linear and positive relationship between the PSQI score and the MES score.Conclusions Poor sleep quality was prevalent among university students. Poor sleep was associated with better academic performance. Students with depression or anxiety were significantly associated with poor sleep quality and being a morning bird.