Artificial Intelligence (AI) has brought about significant changes in our lives, making AI literacy a crucial endeavor for the future. Despite its growing importance in academia, there is limited empirical research on its impact on college students' higher order thinking skills (HOTS). The present study systematically and comprehensively explores the relationship between college students' AI literacy and HOTS using the 3P (Presage-process-product) model. In this model, students' AI literacy represents the presage factors, while behavioral engagement and peer interaction serves as the process factors, and HOTS is the product factor. We gathered data from a survey of 260 college students. We utilized structural equation modeling to analyze the relationships between the 3P factors. The results showed that both AI usage and AI evaluation directly influenced HOTS and also indirectly affected HOTS through the mediating role of behavioral engagement and peer interaction. Conversely, AI awareness and AI ethics showed no direct influence on HOTS, although AI awareness impacted HOTS via peer interaction mediation. The results of the study have several theoretical and practical implications. From a theoretical perspective, this study incorporates AI literacy, behavioral engagement, peer interaction, and HOTS within the 3P model framework, shedding light on their interrelations. On a practical note, the results emphasize the need to consider AI literacy, behavioral engagement, peer interaction when designing courses to enhance HOTS in the era of AI.