Higher education in Bangladesh has expanded significantly. The country now has around 171 universities, including 55 public and 116 private institutions. This rapid increase shows that private universities are playing a significant role in the education sector. In the whole world private universities are in a very good position among the top-ranked universities. Bangladesh is no exception. At present many students prefer private universities over public universities for their higher studies. This study aims to investigate the key factors influencing students’ preference for private universities in Dhaka Division of Bangladesh. This study is qualitative in nature and is based on both primary and secondary data. A sample of 384 currently enrolled students across various private universities in Dhaka division, Bangladesh, has been collected using Stratified sampling technique with a set of questionnaires designed for this study. The research employs an empirical analysis to identify all the variables that affect students’ university choice. 20 educationalists are also interviewed for policy recommendations to make this private sector more effective and students friendly. Data has been collected, transcribed, tabulated and analyzed in terms of the research objectives. After the analysis, findings reveal that an easy and flexible admission process significantly encourages students to select private universities over public alternatives. Additionally, a modern and appealing campus environment with digital facilities, well-organized infrastructure, qualified and smart faculty, availability of preferred academic programs and specialized subjects appears, a vibrant academic atmosphere, student support services, career counselling, club activities etc. play a very important role in choosing private universities. The research concludes on the basis of factor analysis that, the combined four factors which are Academic, Convenience, Smart environment and Student support services positively affect students’ preference toward private universities. Study also provides recommendations for the policymakers and institutional administrators to emphasize on these factors for the improvement of educational competitiveness in Bangladesh.