Regular physical activity, in addition to reducing stress level, has beneficial effect on body as well as mind. This beneficial effect on mind is assessed in terms of academic performance. This research was done to study the the effect of Physical education – sports on anxiety and academic achievement of undergraduate students in Gandhinagar district. Anxiety is considered as one of the greatest problem of modern trends in daily life of every individual. Seven out of ten adults experience stress or anxiety daily, the physical benefits of exercise is to improve physical condition and fighting disease and to encourage staying physically active. In earlier studies done by different researchers the result is positive in nature where sports and physical education have helped in reducing anxiety and increasing academic achievement. It has been found in this research that anxiety of under graduate students participating in sports is lower than under graduate students who do not participate in sports.