In this investigation an attempt has been made to study the effect of anxiety and job involvement on performance of workers. Two psychometric tools were administered to 600 rank-and-file workers of textile unit to assess their levels of job involvement and anxiety. The index of their performance was the actual prediction records. Statistical analysis of the data indicate that both anxiety (F = 86.92; d f = 1,596' p<.01) and job involvement (F = 73.43; d f = 1,596; p<.01) have significantly affected performance. There interaction were also found to be significant (F = 41.19; d f = 1,596; p<.01). Findings indicate that for higher performance high job involvement and low levels of anxiety were necessary. Anxiety was found to be detrimental to performance even in the case of high levels of involvement.