The study focused on home environment and its impact on the adjustment of secondary school students. Present study was conducted on 200 rural and urban students of class 10th of four schools of Tarn Taran city. Data was analysed by using 't-test' and 2 way ANOVA. Results showed that urban secondary school students have better home environment and they have better adjustment as compared to their counterparts. Moreover, findings of the research reveals that boys and girls of urban areas have the same home environment and therefore both of them have same adjustment patterns but girls of rural areas got better home environment so they are better adjusted as compared to the boys of rural areas. Further 2-way ANOVA results also shows that there is significant interactional effect of home environment and locality on adjustments of secondary school students but this interaction of home environment and gender on adjustment of secondary school students is not significant.