Cross-sectional data were collected from 787 Bangladeshi students ages 18 to 27 years, to assess dysfunctional COVID-19 anxiety using the Coronavirus anxiety Scale or CAS and to identify factors influencing their anxiety. Results indicated that 53% of the respondents attained CAS scores in the clinical range. Women reported a significantly higher anxiety than men. Additionally, not having a steady family income, having poor physical health, having relatives or acquaintances infected with COVID-19, and being highly worried about becoming infected were associated with COVID-19 anxiety. Psychosocial interventions should be adopted to mitigate the anxiety of these high-risk groups and to deter harmful behavior during this emergency.