Background Radioactive iodine (iodine-131) therapy is widely used for treating thyroid cancer. However, the knowledge and practices of healthcare professionals in preparing patients for radioactive iodine therapy may vary, potentially affecting patient outcomes. Objective This study aimed to evaluate the knowledge and practices of healthcare professionals at King Abdulaziz Medical City (KAMC) in Jeddah, regarding the preparation of patients with thyroid cancer for radioactive iodine therapy. Methodology A cross-sectional study was conducted using an electronic survey distributed to endocrinology consultants, fellows, medical residents, radiologists, nuclear medicine technicians, and nurses at KAMC. The survey assessed participants' knowledge and practices related to radioactive iodine preparation. Using JMP 17 database software (JMP, Cary, NC), descriptive and inferential statistical analyses were performed and qualitative data were analyzed thematically. Results The study included 30 participants, half of whom had five years of experience or less (43.33%, n=13). More than half of the respondents reported involvement in the administration of iodine-131 (56.67%, n=17). Only around half the participants correctly identified certain aspects, such as the need for recombinant human thyroid stimulating hormone (TSH) prior to iodine therapy (56.67%, n=17), adherence to a low-iodine diet (43.33%, n=13), screening female patients for pregnancy (76.67%, n=23), the duration for which women should avoid pregnancy (56.67%, n=17) and patient education on the side effects and distance precautions when sleeping with others (48%, n=12). The study found a significant association between involvement in the administration or supervision of iodine-131 and knowledge of the necessary medication prior to treatment (p=0.0431 for correct choice and p=0.0117 for correct dosage). Conclusion The study revealed knowledge gaps among healthcare professionals at KAMC regarding the preparation of patients with thyroid cancer for radioactive iodine therapy. It emphasizes the need for educational and training initiatives to improve healthcare professionals' knowledge and awareness in this area. Addressing these knowledge gaps can enhance patient safety and optimize the effectiveness of radioactive iodine therapy.