Environmental impact of medicines has not been well studied as their disposal is not regulated. Furthermore, improving the knowledge about practice of safe methods of disposal, educational interventions to improve awareness, and introduction of regulatory principles is the need of the hour. Therefore, this study was planned to evaluate the knowledge of medical undergraduates on disposal of unwanted medications at a university medical college and its attached hospital. Methodology: An observational cross sectional study was conducted at a tertiary healthcare government teaching hospital from March to October 2020. All the medical undergraduate students of any gender and above 18 years of age who consented to participate in the study were enrolled. The cross-sectional online survey was in the form of a pre-validated self-administered Google form questionnaire. All data was entered on the excel sheet and data was presented as frequency and percentage. Results: A total of 206 participants were included in the study. Unused medicines were disposed of by 53.39% of participants, 71.84% preferred dustbin while 8.25% participants did not know the exact method for safe drug disposal; 98.05% of the participants were aware of checking expiry date of medicine before taking it. Majority (82.03%) of individuals were aware of the environmental hazards caused due to improper disposal of medicines and 90.30% individuals showed interest to learn more about safe disposal of medicine. Conclusion: There is a paucity in the current knowledge of the medical undergraduate students on safe disposal of unused medicine and therefore, training of medical undergraduates on safe drug disposal is a vital component of their education that holds far-reaching implications for both public health and environmental sustainability.