The capital was previously ranked as the 15th best city last year but it has now tumbled to number 32 in the world because of the cost of tuition fees.
However, it is still well placed among some of the world's major cities, coming in above Washington, Milan, Moscow and Madrid.
The QS Top Universities Guide recommended Dublin because of its high concentration of students and a high proportion of international students studying here.
However, the report's authors were critical of the city's affordability and said tuition fees were too high.
"For those whose idea of a perfect student city involves combining top-class study facilities and historic surroundings with a cracking social scene and famously friendly locals ... Dublin should be on your list," said a QS spokesperson.
"Its weakest point is affordability, with international tuition fees averaging around US$18,000 (€14,430.44) per year. But in terms of general living expenses, Dublin may not be as costly as you expect," they added.
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Read full story: Dublin tumbles in list of world's top student cities
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