Background: The increasing use of skin-lightening cosmetics has made product safety and informed selection important concerns among university students. Adequate knowledge is essential to help students recognize cosmetic ingredients, understand potential risks, and make responsible purchasing decisions. Objective: This study aimed to assess students’ knowledge and behavior in selecting skin-lightening cosmetics, examine the relationship between knowledge and selection behavior, and determine the association of educational type and level with cosmetic selection behavior among university students in Banyumas Regency. Methods: A descriptive-analytical study with a cross-sectional design was conducted in January 2025. Data were collected through an online questionnaire using Google Forms from 400 university students recruited through random sampling. Data were analyzed using Jamovi, with statistical tests applied to examine the relationships between knowledge, cosmetic selection behavior, and educational characteristics. Results: The findings showed that 71% of respondents had a high level of knowledge, while 91% demonstrated good behavior in selecting skin-lightening cosmetics. Knowledge was strongly and positively associated with selection behavior (p < 0.01; Spearman’s rho = 0.640). However, educational type and educational level were not significantly associated with cosmetic selection behavior (p > 0.05 and p = 0.701, respectively). Conclusion: Most students demonstrated good knowledge and behavior in selecting skin-lightening cosmetics. Higher knowledge levels were significantly associated with better selection behavior, whereas educational type and level showed no significant association. These findings highlight the importance of strengthening knowledge and awareness of cosmetic safety to encourage informed and responsible product selection among university students.