Introduction Irritable bowel syndrome (IBS) is a common functional gastrointestinal disorder characterized by recurrent abdominal pain and altered bowel habits. Medical students, due to academic stress, irregular dietary patterns, and disrupted sleep, may be at a higher risk of developing IBS. This study aims to determine the prevalence of IBS symptoms among medical students, identify associated risk factors, and assess its impact on daily activities and academic performance. Methodology A cross-sectional study was conducted among medical students in Peshawar, Pakistan. Data were collected using a validated questionnaire based on the Rome IV criteria for IBS. Information on demographic characteristics, stress levels, dietary habits, sleep patterns, and IBS symptoms was obtained. The sample size consisted of 480 participants selected through a stratified random sampling technique. Data were analyzed using SPSS version 20, and the chi-square test was applied to determine associations between IBS symptoms and various risk factors. Results The prevalence of IBS symptoms among medical students was found to be 60%. A statistically significant association was observed between IBS and gender, with female students being more affected (p < 0.05). Higher academic years had an increased prevalence of IBS symptoms compared to junior students. Additionally, students residing in hostels were more likely to report IBS symptoms than those living at home. Stress, irregular dietary habits, and poor sleep quality were identified as key contributing factors. IBS symptoms significantly impacted daily activities and academic performance in affected students. Conclusion This study highlights a high prevalence of IBS symptoms among medical students, with stress, dietary habits, and sleep disturbances playing a crucial role. Female students, those in senior academic years, and hostel residents exhibited a higher burden of symptoms. Early interventions focusing on stress management, dietary modifications, and lifestyle improvements are essential to mitigate IBS-related health concerns in this population.