The aim of this research was to investigate the role of psychological capital Teachers’ Job Commitment and students’ academic Achievements: A Case Study of University of Peshawar with special reference to higher education institute i.e. University of Peshawar Khyber Pakhtunkhwa (KP), province of Pakistan. The objectives of the study were to explore the psychological capital of teachers, the effect of psychological capital on teacher’s job commitment and to ascertain the effect of psychological capital on students’ achievements at tertiary level. The research study was conducted at University of Peshawar. The following null hypotheses were tested: 1) Psychological Capital has no significant effect on teachers’ job commitment. 2) Psychological Capital has no significant effect on students’ academic achievements.3) Teachers job commitment has no a significant effect on students’ academic achievements.4) There is no a significant difference of psychological capital and teachers’ job commitment (M, F) on students’ academic achievements. The research study was descriptive and co-relational/causal in nature as it aimed to describe the respondents attributes e.g. (age, gender etc) and establish relationship with the other factors such as psychological capital, teachers job commitment and student academic performance. The population of this research study was the entire teaching faculty (male and female) of the University of Peshawar. The total population of the study was 637 teachers of the University of Peshawar. The researcher utilizes survey method of data collection as it constructed and administered questionnaire to collect the data from respondents i.e. lecturers, assistant professors, associate professors and professors of University. The sample of the study consisted of 245 teaching faculty. For data gathering, the probability sampling technique i.e. stratified random sampling with proportionate allocation method was used. The data was tabulated, analyzed and interpreted by using an inferential statistical tool (Regression and T-test). To meet the objective number (i) to (v), the researcher used the Hierarchal Linear Regression Model. For measuring objective number (vi), the researcher used independent sample T-test. The result of correlation amid psychological capital, teacher’s job commitment and students’ academic achievement shows that there exists significant positive relationship between variables. Hierarchal Linear Regression analysis was conducted to examine the hypothesized relationship among the variables. The findings of the study exhibit that 1) the absence of psychological capital amid teachers is directly proportional to student’s poor academic grades, 2) those teacher’s in which psychological capital doesn’t exist their students not get higher marks in their assignment, mid-term and final term examinations, 3) those teacher’s in which job commitment doesn’t exist their students not get higher marks in their assignments, mid-term and final-term examination as compared to those teacher’s in which psychological capital exist, 4) The teacher’s job commitment was found a significant predictor of student better academic achievement, 5) the students of more committed teacher with higher psychological capital will get good grades and higher marks in their assignment, mid-term and final-term marks, 6) the committed teacher will give good lectures to their students with great synergy and impact. This in return, leads to the better student learning, enhance student knowledge and social skills. The study recommends that the management of University of Peshawar should make special attention for the enhancement of teacher’s psychological capital and their commitment in the job via training interventions.