Family, being the first and major organization of socialization has great influence on the development of a child. Studies have shown that most of the children who are successful or great achievers and well-adjusted come from the families where satisfying healthy relationships exist. Studies have further suggested that a good, supportive environment at home, school and neighbourhood could enhance child's scholastic achievement. This paper presents a study based on a sample of 200 students drawn from different schools of Shimla. The study was planned to evaluate the effect of family environment on the academic performance of High school children. A family environment scale evolved by Moos & Moos was used to assess the quality of family environment. The academic performance was determined with the help of report cards of the students besides other performance records taken from the schools.