This paper is based on a study that was designed to study the "Impact of Anxiety on the Academic Achievement of Students at University level in Bahawalpur, Pakistan." Being a descriptive study, survey method was adopted for data collection to find out the results. For sample size out of 200 students 97 students were selected by stratified sampling. The researcher made three groups of all the students and three groups of male and female students. In this research questionnaire (Otis self-administering test of mental ability) and anxiety measurement scale was selected as an instrument for the purpose of data collection. Data was analyzed by using the formula of regression to see the impact of anxiety on the academic achievements of students and formula of co-relation was applied to see the relationship of anxiety and academic achievements of students in SPSS software. The in depth investigation of the findings obtained through this analyzed data reeals that anxiety had its impact on academic achievement of students. The results show that when anxiety increases, academic achievement decreases both in male and female students. It is also noteworthy in the results that there is more impact of anxiety on female students as compared to male students.© 2012 IOJES. All rights reserved