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Writing as communicative skill plays significant role in human life. Writer can communicate well by incorporating writing mechanics properly. Writing apprehension hinders the writers to write what they want to communicate. An experimental study was conducted to find out the effect of peer assessment as an instructional technique on English writing mechanics and English writing apprehension of undergraduate students. Pre-and post-test control group experimental design was used to measure the effect of peer assessment. Researchers selected forty (40) undergraduate students randomly from a public sector associate college from district Lahore. The sample was divided into two equal groups. Peer assessment was used as intervention with the experimental group for 12 weeks. English writing mechanics were assessed through a test with three extended response items. English writing apprehension was measured through Likert type scale of English writing apprehension inventory. Data were analyzed by applying paired and independent samples t-test statistics. Findings reveal that peer assessment is effective to improve English writing mechanics and to reduce English writing apprehension of undergraduate students. Undergraduate level English teachers are recommended to use peer assessment as an instructional technique to improve students English writing mechanics and to reduce English writing apprehension.