Students are staging a "teach-in" at Aberystwyth University in protest at increased tuition fees.
Aber Students Against The Cuts are occupying a lecture hall on Penglais campus with lecturers and the public.
The occupation started on Monday and continued into Tuesday with lectures, while some protesters stayed overnight.
Aberystwyth University said it respected the rights of students to voice their opinions on education.
Similar protests have been held at universities across the UK in opposition to increased tuition fees in England.
Aber Students Against The Cuts has issued a number of demands as part of its demonstration, and has called on Aberystwyth University Vice-Chancellor Noel Lloyd to condemn planned funding cuts and the rise in tuition fees.
The group has also called on the university not to make job cuts.
As part of the protest, students have being taking lectures, staging workshops and seminars.
"We are creating a free university in our occupied space - that's what a teach-in is all about," said spokesman Kieran Ford.
"We are committed to not disrupting any lectures or planned events in the space, but we will use all other time in the room to take education in our grasp and show the university management that we need, want and deserve them to be on our side."
Mr Ford said about 20 people slept in the lecture hall, but about 40 to 50 people had joined in the protest during the day.
Aber Students Against The Cuts has organised a number of protest events, including a 1,500 signature petition.
A university spokesman said: "We respect the right of students to voice their opinions on matters relating to higher education.
"This is a period of great change for the sector and the university will continue to listen to the concerns voiced by our students."