Background: In today’s technological era, smartphone and internet become an integral part of everyone’s life. Despite of having tremendous benefits it has become a major concern for youth’s wellbeing. Hence the researcher aimed to assess the relationship between internet addiction and psychological wellbeing among the University students. Material and methods: The study was conducted among 220 students which were selected by using stratified proportionate random sampling technique. Data were collected by Young’s Internet AddictionTest and Ryff’s Psychological Wellbeing scales. Results: Findings revealed that 3% respondent had Internet addiction, 28.5% were at risk of developing Internet addiction. Internet addiction was negatively correlated with Psychological Wellbeing(p=.000) as well as with its specific dimensions. Findings further revealed that student’s father’s education and mother’s occupation were found statistically associated(p=0.01) with the internet addiction. Conclusion: The study concluded that students need proper counseling regarding the use of Internet.