To examine the levels and predictors of knowledge on HIV and AIDS, a survey was conducted among 392 tertiary level students in the University of Dhaka, Bangladesh. Students demonstrated a high knowledge of transmission and prevention of HIV and AIDS yet with considerable misconception. All students said that unprotected sex with an HIV-positive man or woman can transmit the HIV virus to a negative man or woman but at the same time 43.6% of students believed that there is a preventive vaccine for HIV and 39.8% understood that HIV can be cured if it is diagnosed early. Multivariate regression analysis indicated that the students who had more knowledge on HIV and AIDS were: older boys, fathers having more income, business or service as father's occupation, having more mass media exposure, being senior students, living in a university dormitory, and being students of faculty of arts, social sciences, and science. The findings of this study suggest that a special course on health education, including risk perceptions of HIV and AIDS and issues related to sexual and other high risk behavior, should be included in the course curricula irrespective of disciplines at tertiary levels.