The prevalence of mental health problems among youth worldwide is alarming and a public health concern. This study aimed to determine the prevalence of psychological distress (PD) among youth at two time points, ages 15 and 20 years, and to identify groups that are particularly vulnerable to PD. Utilizing data from the Malaysian Health and Adolescents Longitudinal Research Team study, we analyzed a cohort of 416 participants who underwent mental health assessments in both 2014 and 2019/2020. The prevalence of PD increased significantly between the ages of 15 (15.9%) and 20 (34.6%) years. Factors such as parental mental health problems, Indian and other ethnicity, lower maternal education attainment, and alcohol consumption were significantly associated with PD in youth. This study underscores the importance of increasing access to mental health care while improving surveillance and prevention programs to protect youth's psychosocial well-being.