The study aimed to investigate the impact of psychosocial factors on the academic performance of university students in Pakistan. It focused on three main variables: psychosocial factors, social competence, and academic performance. The study involved 4708 university students from all over the country. SEM analysis technique was used for the study. Tool for the psychosocial factors was adapted while self-constructed tool for the social competence was used for the data collection. The results showed that social integration, perceived social support, and effort-reward imbalance were significant factors influencing academic performance. Social competence also played a significant mediator role in this relationship. The study recommends that university administration consider psychosocial factors in curricula and plan activities that foster social competence and positive attitudes.