Princeton is renowned for its rich educational landscape, prominently featuring Princeton University, one of the world’s leading research institutions. Established in 1746 as the College of New Jersey, the university relocated to Princeton a decade later. Its picturesque main campus, characterized by Collegiate Gothic architecture, includes notable structures such as Cuyler and Walker Halls, and Fine Hall, which houses the Department of Mathematics. The university's historic center is located on Nassau Street, with additional facilities, including the James Forrestal satellite campus in Plainsboro Township and various athletic fields in nearby West Windsor Township. In 2024, Princeton University secured the top spot in U.S. News & World Report's national university rankings for the ninth consecutive year, also leading similar lists from Forbes and The Wall Street Journal.

Another significant institution in the area is the Princeton Theological Seminary, the oldest seminary in the United States associated with the Presbyterian Church (USA). Its main academic campus is situated in Princeton, while residential facilities are located just outside the borough in West Windsor Township.

The Institute for Advanced Study, recognized for its influential research contributions, encompasses 800 acres of land known as the Institute Woods in the region. Additionally, Mercer County Community College, located in nearby West Windsor, serves the educational needs of Princeton residents and the broader Mercer County community, offering two-year public college programs.

The historical Westminster Choir College, initially established in 1932, became a part of Rider University in 1992. Previously situated in Princeton, it faced significant changes in recent years, including a controversial parking lot expansion proposed by Rider in 2012 that met with strong opposition from local residents. Further attempts by Rider to sell the choir college campus to a Chinese company in 2019 sparked public outcry, ultimately halting the sale. In 2020, Rider relocated all Westminster Choir College activities to its Lawrenceville campus, leaving the Princeton site largely unused while legal disputes continue regarding its future and academic offerings. As of 2023, the Borough of Princeton has been leasing overflow parking from Rider for $1,000 per month, subsequently selling those parking rights to businesses and residents for $30 per month.

As Princeton continues to evolve, the educational institutions within its borders play a vital role in shaping the community's cultural and intellectual fabric.