Functional movement competency is a key determinant of physical performance, injury prevention, and overall health among university students. Lifestyle changes such as prolonged sitting, reduced physical activity, and academic stress may negatively affect movement quality and physical function. This study assessed functional movement competency, evaluated physical performance outcomes, and examined the relationship between these variables among 120 university students using a quantitative cross-sectional design and simple random sampling. Functional movement competency was assessed through standardized movement screening, while physical performance was evaluated using balance, agility, flexibility, and muscular endurance tests. Data were analyzed using descriptive statistics and Pearson correlation in SPSS Version 26. The findings showed satisfactory functional movement competency (Mean = 75.38 ± 8.41) and favorable physical performance outcomes (Mean = 79.12 ± 7.26). A significant positive relationship was observed between functional movement competency and physical performance (r = 0.734, p < 0.001). The study highlights the importance of incorporating functional movement assessment and corrective exercise programs into university wellness initiatives to improve fitness, reduce injury risk, and promote lifelong health.