Employee’s residential colony is situated at Baghdad-ul-Jadeed Campus, facilitating more than 300 families of university employees. There are male and female bachelor hostels for faculty and officers, Executive hostel and Foreign Faculty hostel are also located at Baghdad-ul-Jaded campus for faculty officers and guests.

The Islamia University of Bahawalpur has a large boarding facility for students. Sixteen hostels with housing facility of 10 thousand students are available in five campuses. Rabia hall for girls and Abu Bakar Hall for boys are located at Abbasia Campus. There are six girls’ hostels are located in Baghdad Ul Jaded campus which are named as Fatima-tuz-Zahra Hall, Ayesha Siddiqa Hall, Khadija-tul-Kubra Hall, Amna hall, Zainab Hall and Halima Hall. Four boy’s hostels are also located in Baghdad-ul-Jadeed Campus named as Umar Hall, Ali Hall, Ahmad Hall and Usman Hall. Similarly, two hostels are located in Bahawalnagar Campus, Ayesha Hall for girl and Abu Bakar Hall for boys. In Rahim Yar Khan Campus, Ayesha Hall for girls and Iqbal Hall for boys are setup for on campus boarding facility.

The hostels are administered by Chairpersons Hall Council (Male and Female) and Chief Warden along with a team of wardens. Each hostel maintains a cafeteria, dining hall, a common room with facilities for indoor games, computer labs equipped with latest technology, a reading room, library, mosque, sports club, gym, separate laundry rooms, and lush green gardens. Beautiful study parks, separate for boys and girls adjacent to hostels make the atmosphere beautiful and comfortable for students. Study parks are decorated with flowers, lakes and sports courts, and also have facilities like electricity connection points, high speed internet and separate sections of sitting areas.