This study looks at how a student’s school environment affects their moral values. At a time when society is facing a decline in values and growing problems, it’s important to understand how these environments help shape students’ behavior and character. The study employs a survey research method involving a sample of 1,446 students from 20 higher secondary schools, selected using stratified random sampling. Two tools were utilized: the Test for Moral Values among School Students (TMVSS), developed by the investigator, and a standardized school Environment Inventory (SEI). The research focused on six components of moral values—Personal, Academic, Social, Aesthetic, Humanitarian, and Religious—and examined how these varied across different levels of school environments (classified as High, Moderate, and Low climate). Data analysis revealed that students from high school climate environments scored significantly higher in Personal, Social, Aesthetic, Humanitarian, and Religious values compared to their counterparts in moderate and low climate schools. However, academic values did not show significant variation across school climate categories. Findings suggest that a positive school climate, characterized by supportive teacher-student relationships, ethical modeling by staff, and co-curricular engagement, has a substantial influence on students’ moral development. The study underlines the critical role schools and families play in shaping well-rounded, morally responsible individuals. Educational implications include the integration of value education into school curricula, targeted interventions in low school climate settings, and the continuous assessment of school moral climate.