Background: Sleep is necessary for human beings. As it accounts for almost one-third of our lives, its disturbance may have serious consequences on our quality of life and everyday function. Current study aimed to assess the prevalence of different types of sleep disorders, and to assess risk factors and impact of sleep disorders on functional outcomes Methods: The design was a cross sectional community-based study. Multistage cluster sampling was used to recruit participants. Sleep Disorders Questionnaire (SDQ), and Functional Outcome of Sleep Questionnaire (FOSQ-10) were used. Results: A total 586 participants were included in the current analysis. Out of them, 75.7% were under 30 years old, 63.8% were female, and 72.4% were single. The mean SDQ score was 31.5±9.7, with a range of 16 to 61. The mean FOSQ-10 score was 28.4±6.6, with a range of 10 to 40. Insomnia had the highest prevalence of sleep disorders (82.3%), followed by apnea (67.6%).  Poor functional outcome represent 65.9% of study individuals. Those with insomnia, psychiatric disorders, circadian rhythm disorder, or apnea had significantly poor functional outcomes (p-values 0.045, 0.005, 0.013, and 0.030 respectively). Additionally, caffeinated drinks, family history of sleep disorders, and asthma or psychological disorders had significantly poor functional outcomes (p-values 0.001, 0.006, 0.008, and 0.011 respectively).  Conclusions: Poor functional outcomes had significant associations with sleep disorders as well as lifestyle and medical risk factors.  Health education campaign to raise awareness about sleep disorders and screening sleep disorders are recommended to overcome the serious consequences of sleep disorders.