Background:　The　hypothalamus　plays　a　crucial　role　in　regulating　sleep-wake　cycle　and　motivated　behavior.　Sleep　disturbance　is　associated　with　impairment　in　cognitive　and　affective　functions.　However,　how　hypothalamic　dysfunction　may　contribute　to　inter-related　sleep,　cognitive,　and　emotional　deficits　remain　unclear.　Methods:　We　curated　the　Human　Connectome　Project　dataset　and　investigated　how　hypothalamic　resting　state　functional　connectivities　(rsFC)　were　associated　with　sleep　dysfunction,　as　evaluated　by　the　Pittsburgh　Sleep　Quality　Index　(PSQI),　cognitive　performance,　and　subjective　mood　states　in　687　young　adults　(342　women).　Imaging　data　were　processed　with　published　routines　and　evaluated　with　a　corrected　threshold.　We　examined　the　inter-relationship　amongst　hypothalamic　rsFC,　PSQI　score,　and　clinical　measures　with　mediation　analyses.　Results:　In　whole-brain　regressions　with　age　and　drinking　severity　as　covariates,　men　showed　higher　hypothalamic　rsFC　with　the　right　insula　in　correlation　with　PSQI　score.　No　clusters　were　identified　in　women　at　the　same　threshold.　Both　hypothalamic-insula　rsFC　and　PSQI　score　were　significantly　correlated　with　anxiety　and　depression　scores　in　men.　Further,　mediation　analyses　showed　that　PSQI　score　mediated　the　relationship　between　hypothalamic-insula　rsFC　and　anxiety/depression　symptom　severity　bidirectionally　in　men.　Conclusions:　Sleep　dysfunction　is　associated　with　negative　emotions　and　hypothalamic　rsFC　with　the　right　insula,　a　core　structure　of　the　interoceptive　circuits.　Notably,　anxiety-depression　symptom　severity　and　altered　hypothalamic-insula　rsFC　are　related　bidirectionally　by　poor　sleep　quality.　These　findings　are　specific　to　men,　suggesting　potential　sex　differences　in　the　neural　circuits　regulating　sleep　and　emotional　states　that　need　to　be　further　investigated.　©　2023