Background This study aimed to determine the prevalence and risk factors associated with amblyopia among preschool and school-going children aged 3-12 years. Methodology A cross-sectional, observational study was conducted on 1,683 preschool and school-going children in western India. They were divided into three groups (group A: 3-5 years, group B: 6-9 years, and group C: 10-12 years). All participants underwent comprehensive ophthalmological evaluations to identify ocular causes of amblyopia such as refractive errors, strabismus, and stimulus deprivation. Non-ocular risk factors were assessed through detailed parental questionnaires addressing prenatal, perinatal, and postnatal histories. Results Of the children screened, 5.88% (n = 99) were diagnosed with refractive errors, and 1.66% (n = 28) were diagnosed with amblyopia. Among amblyopic children, refractive amblyopia was the most prevalent at 71.43% (n = 20, p < 0.0001), followed by strabismic amblyopia (21.43%, n = 6) and stimulus deprivation amblyopia (7.14%, n = 2). Astigmatism was found to be most amblyogenic in cases of both unilateral and bilateral amblyopia, though hypermetropic amblyopic children formed the majority of the refractive amblyopia population. The majority of children had moderately severe amblyopia across all age groups. Significant non-ocular risk factors included pre-obese maternal body mass index at conception (p < 0.001) and low birth weight (p < 0.001). Although preterm birth also emerged as a major risk factor, the results were not significant (p = 0.063). Conclusions Amblyopia in children can be attributed to both modifiable ocular and non-ocular risk factors. It is one of the most common reversible causes of childhood blindness. Early identification and intervention are essential for optimal visual outcomes, highlighting the importance of initiating amblyopia screening programs starting at preschool ages.