The aim of the study was to investigate the influence of place of living on psychological well-being of students studying in senior secondary schools and to test for interaction effects of place of living and academic achievement on psychological well-being. The analyzed data set contained information on 519 boys and girls in the 11t grade from the Kashmir valley of Jammu and Kashmir India. The study has a survey type design. Psychological well-being scale developed by Dr. Devendra Singh Sisodia and Ms. Pooja Choudhary (2012) has been used. The marks obtained in science by students served as the indicator of academic achievement. The statistical analysis was 2 ×3 (ANOVA) factorial designs. Results reveal a significant effect of the place of living on psychological well-being and show no significant interaction effect between the academic achievement levels (groups) in science and the place of living in terms of the psychological well-being of senior secondary students.