This study aims to examine the association between smartphone dependence and psychological distress among undergraduate students in Indian universities and to identify key behavioural and psychological predictors of dependence using a stressor–strain–outcome perspective. A cross-sectional survey was conducted among 1051 undergraduate students (aged 18–25 years). Standardised instruments, including the Smartphone Addiction Scale and psychological distress measures, were used. Data were analysed using descriptive statistics, correlation analysis, multiple linear regression, and structural equation modelling. The findings reveal a high prevalence of smartphone dependence, with students reporting substantial daily usage (mean \(\approx \) 7–8 hours). Descriptive analysis indicates moderate to high levels of psychological distress alongside smartphone dependence. Regression analysis demonstrates that daily usage duration ( \(\beta = 0.294, p < 0.001\) ) and checking frequency ( \(\beta \) = 0.025, p < 0.001) are significant positive predictors of smartphone dependence. At the same time, depression shows a weaker, non-significant direct effect in the regression model. The SEM results provide deeper insights, indicating that problematic smartphone use significantly increases smartphone dependence ( \(\beta \) = 0.517, p < 0.001). Furthermore, behavioural outcomes negatively influence dependence ( \(\beta \) = −0.621, p < 0.001) and exert an indirect effect through psychological distress ( \(\beta \) = −0.150, p < 0.01). These findings suggest that psychological distress acts as a mediating mechanism linking smartphone usage patterns to behavioural consequences. Additionally, factor loading and correlation matrix analyses highlight strong associations between anxiety, stress, depression, and smartphone usage indicators, reinforcing the multidimensional nature of smartphone dependence. The study concludes that behavioural engagement patterns and psychological distress are critical determinants of smartphone dependence, with evidence supporting a mediated relationship rather than a direct causal pathway. These findings underscore the need for integrated digital well-being and mental health interventions in university settings.