The University of Malakand had initially shaped the former PIDC residential flats into boys hostels, which provided boarding facilities to the deserving students. However, due to the constant increase in number of students, construction of new hostels was among the top priorities. In this context, two hostels for boys have been constructed to serve the students belonging to far flunge areas. Both the hostels are named after the legendary figures of Malakand Division to exalt their services and contributions in the region. the hostels flagged as Malak Ahmad Khan Baba (HEC funded 3-story building, made functional in 2007-08, situated on campus in South of university at the bank of River Swat) and Shaikh Mali Baba (constructed through own resources, situated at North of university in the bottom of lush green hills, functioning since 2016) Boys' Hostel. Having the capacity of more than 800 hundred students, both the hostels are well-equipped with living facilities like mess system, TV Lounges, Study Rooms, security staff, wardens, sanitation staff for cleanliness, and hotel bearers (24-hours available for services). In addition, the university management is working on construction of another boys' hostel, which will be a lucrative addition to the infrastructural elegance of the university.
The University provides a separate boarding facilities to female students as well. For this purpose, a well-furnished and sophisticated hostel is functioning with name of Masooma Bibi (a legendary lady in history of Malakand Division) Girls' Hostel that accommodates more than 400 female students and faculty members. The hostel is situated at the North of University near Professors' colony having mess, TV Lounge, special security (male + female) staff, hostel bearers, study rooms, and laundry services. In addition, the female faculty members are also accommodated in the said hostel who take special care of the students in hostel and ensures their security and comfort.