Education is an important parameter to develop the social, economic and cultural life of any individual or society. For getting better education, it requires good environment and a good health. The present era is an age of anxiety because of our dynamic life styles. It is not only a favourite theme for many poets and novelists, but has become a nodal concept in psychology. It has been utilized for explaining many of psychopathological problems and has become a useful construct in the field of social Inter-relationships and behaviour. Academic anxiety is a kind of state anxiety which relates to the impending danger from the environment of the academic institutions including teacher, certain subjects like mathematics, English etc. The most important objective of this present study is to analyse academic anxiety of secondary school students in relation to school environment, to compare academic anxiety of girls and boys students in secondary school and compare academic anxiety of private and government secondary school students. This research work is conducted on the population of 300 students studying in secondary school in different government and private school in Balangir district. The sample is purposively selected 60 students enrolled in different school of CBSE board and Odisha Board school education. The study reveals that there exists a negative and non-significant correlation between academic achievement and anxiety among secondary school students. The mean score of academic anxiety of private school students is higher than government school students. The mean score of academic anxiety of girl’s secondary school students is higher than boys secondary school students. Problem anxiety may be caused by a mental condition, a physical condition, the effects of drugs or from a combination of these.