Socio-emotional development consists of the child's experience, expression, and management of emotions and the ability to establish tremendous and profitable relationships with others. This research was conducted with the main objective to identify the role of schools in socio-emotional development of higher secondary level students and its impact on their societal adjustment with respect to investigate the grounds due to which students are involved in bad habits like abrupt anger, impatience, intolerance, overconfidence, superiority/inferiority complex, disobeying the teachers/elders, etc., and they are victims of mala fide activities also, such as smoking, ice addiction, misuse of mobile phones, unfair love, etc. It was a mixed-methods study (quantitative-cum-qualitative) conducted on public sector boys and girls higher secondary schools of Faisalabad division. The sample consisted of higher secondary grade (XI-XII) students, chairpersons (principals), parent and general members of the school councils. A Likert type scale and a semi-structured interview protocol was developed by the researchers for data collection. The instruments were validated by experts and questionnaire was pilot tested to ensure reliability employing Cronbach Alpha. The findings revealed that there was a significant impact of social and emotional development on societal adjustment p < 0.000. There was a significant positive relationship of social development and emotional development with societal adjustment. Qualitative data revealed that schools are not playing their role in true spirit to develop higher secondary level students, socio-emotionally. Apart from this, parents and home environment also play a major role in spoiling the socio-emotional development of students. It is recommended that an action plan may be drawn and implemented by the government at public higher secondary schools’ level for the proper socio-emotional development of students and their societal adjustment.