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The purpose of this study was to identify the factors that affect the performance of primary school teachers in terrorism affected areas. The main objective of the study was to measure and summarize the perceptions of teachers themselves about the factors that affect teachers’ performance in terrorism affected areas. The study was descriptive in nature. All the primary school teachers in district Swat constituted the population of the study. Hundred teachers, fifty male and fifty female were randomly selected. In this study five factors were identified. The first factor focuses on the financial position of teachers in terrorism affected areas. The second factor focuses on the environment of schools. The third factor discusses the parents’ cooperation during the terrorism. The fourth factor focuses on the security of schools and teachers and the fifth factor focuses on the psychological effect of terrorism on the performance of teachers. A self-developed closed ended questionnaire on five point rating scale was developed, and collected data regarding the five factors, financial resources of teachers, physical environment of school, security, parents involvement in teaching and learning process, psychological effects of terrorism on teachers. The collected data were tabulated, analyzed and interpreted by using statistical techniques as percentage of the responses .The main findings of the study were that mostly teachers faced the economic challenges in terrorism affected areas. Financial resources of teachers were destroyed. Salaries were delaed. Side businesses were destroyed. Continuous attacks on school affected the learning ability of students that affected the performance of teachers. Mostly parents became IDPs and the remaining did not take interest in the education of children. Teachers were not safe in school neither security was provided to teachers. Due to fear of attacks on school the teachers gave less time to teaching. Anxiety and emotional complained of teachers increased. There was no significant differences in the opinion of male and female teachers. It was recommended that the government should provide security to teachers, parents and schools. So that to reduce the depression and anxiety of teachers. The government should support the teachers financially.