The university founded by former President Thomas Jefferson in 1819 beat 100 other colleges nationwide for the top honors, NBC reported.
Runner-up was the University of Southern California, followed by the University of Florida.
Rankings were based on scores in three categories: sporting life, nightlife and sex life, Playboy magazine said in a statement.
University of Virginia ranked 16th, third and second in those categories, respectively, WTVR reported.
While students at UVA are likely impressed by the ranking, university administrators are not happy and they are demanding a recount.
“It’s far more important for the university to be known for our academic achievements in teaching and research, the extraordinarily high graduation rate of our students, and our commitment to providing financial support to all students who have demonstrated need,” the University of Virginia said in a statement.
“These are the areas for which the university has consistently been ranked among the best in the country and for which we have become widely known and respected in higher education.”
The University of North Carolina got high marks for having the No.1 sex life, while Ohio State University had the best sporting life, Playboy said.
Southern Methodist University scored the highest in the nightlife category.
The magazine named SUNY College of Environmental Science and Forestry as the country's "Worst Overall Party School."
The rankings will be published in the October issue of the magazine.