The purpose of the current research was to study the relationship of life skills and self-esteem development with test anxiety and school performance in female students in the schools of Babol city in Mazandaran province. The sample size of the research involved 150 students selected by random cluster sampling.

Participants were asked to answer Questionnaire on Life Skills and Self-Esteem Inventory by Cooper Smith and Test Anxiety Inventory by Sarrason while their previous term average(mean scores) was considered as a criterion for their school performance. Results of the research showed that there was a significant correlation between part of the factors embedded in Life Skills and Test Anxiety Inventory. Also, significant correlations between self-esteem and test anxiety and self-esteem and life skills were observed. However, no significant link was found between self-esteem and school performance. Furthermore, results from step by step regression testing revealed that only self-esteem made a significant contribution as a predicting factor to test anxiety as compared to another variable, namely life skills.