Academic anxiety is the fear of studying including not having good study habits and fear of failure among others. In the present study there was state trait anxiety test (STAT) used to measure anxiety level of selected subjects. Study will find out significant level of anxiety and its effect on Academic performance. In the present study, 90 questionnaires about different anxiety levels were filled and discussed with the students and it was concluded that there is a significant difference in Anxiety level and have a positive effect on Academic performance of students of the proposed University. The study was concluded with proper recommendations and Suggestions.